Earnings Release: Here's Why Analysts Cut Their Scandinavian Medical Solutions A/S (CPH:SMSMED) Price Target To kr.5.50

Scandinavian Medical Solutions A/S (CPH:SMSMED) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues of kr.245m beat analyst forecasts by7.4%, while the business broke even in terms of statutory earnings per share (EPS). Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

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Following last week's earnings report, Scandinavian Medical Solutions' lone analyst are forecasting 2026 revenues to be kr.248.5m, approximately in line with the last 12 months. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr.259.0m and earnings per share (EPS) of kr.0.41 in 2026. So we can see that while the consensus made a minor downgrade to revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenue after the latest result.

See our latest analysis for Scandinavian Medical Solutions

The average price target fell 15% to kr.5.50, withthe analyst clearly having become less optimistic about Scandinavian Medical Solutions'prospects following its latest earnings.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Scandinavian Medical Solutions' revenue growth is expected to slow, with the forecast 1.2% annualised growth rate until the end of 2026 being well below the historical 29% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that Scandinavian Medical Solutions is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analyst downgraded their revenue estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

One Scandinavian Medical Solutions broker/analyst has provided estimates out to 2028, which can be seen for free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with Scandinavian Medical Solutions (including 1 which doesn't sit too well with us) .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.