Medistim ASA Just Missed Earnings - But Analysts Have Updated Their Models

Medistim ASA (OB:MEDI) just released its latest quarterly report and things are not looking great. Medistim missed earnings this time around, with kr133m revenue coming in 2.2% below what the analyst had modelled. Statutory earnings per share (EPS) of kr1.28 also fell short of expectations by 17%. 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 gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

See our latest analysis for Medistim

Taking into account the latest results, the most recent consensus for Medistim from sole analyst is for revenues of kr560.5m in 2025. If met, it would imply a credible 3.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 8.1% to kr6.00. In the lead-up to this report, the analyst had been modelling revenues of kr567.5m and earnings per share (EPS) of kr6.51 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analyst did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target fell 18% to kr172, with the analyst clearly linking lower forecast earnings to the performance of the stock price.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Medistim's revenue growth is expected to slow, with the forecast 2.8% annualised growth rate until the end of 2025 being well below the historical 10% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.2% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Medistim.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Medistim. On the plus side, there were no major changes to revenue estimates; although forecasts imply they 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Medistim. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts 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.