Medistim ASA Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

As you might know, Medistim ASA (OB:MEDI) just kicked off its latest second-quarter results with some very strong numbers. The company beat forecasts, with revenue of kr145m, some 7.6% above estimates, and statutory earnings per share (EPS) coming in at kr1.90, 29% ahead of expectations. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Medistim after the latest results.

See our latest analysis for Medistim

After the latest results, the sole analyst covering Medistim are now predicting revenues of kr551.0m in 2024. If met, this would reflect a satisfactory 3.3% improvement in revenue compared to the last 12 months. Before this earnings report, the analyst had been forecasting revenues of kr538.5m and earnings per share (EPS) of kr5.87 in 2024. The thing that stands out most is that, while there's been a modest lift to revenue estimates, the consensus no longer provides an EPS estimate. This impliesthat revenue is more important following the latest results.

The average price target fell 9.5% to kr190, withthe analyst clearly having become less optimistic about Medistim'sprospects following its latest earnings.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Medistim's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 6.8% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. Compare this to the 171 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.2% per year. Factoring in the forecast slowdown in growth, it looks like Medistim is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The highlight for us was that the analyst increased their revenue forecasts for Medistim next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Medistim will grow in line with the overall 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 Medistim broker/analyst has provided estimates out to 2026, which can be seen for free on our platform here.

We also provide an overview of the Medistim Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.