Stock Analysis

Napatech A/S (OB:NAPA) Full-Year Results: Here's What Analysts Are Forecasting For This Year

OB:NAPA
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It's been a mediocre week for Napatech A/S (OB:NAPA) shareholders, with the stock dropping 15% to kr20.50 in the week since its latest full-year results. It was an okay report, and revenues came in at kr.116m, approximately in line with analyst estimates leading up to the results announcement. 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.

Check out our latest analysis for Napatech

earnings-and-revenue-growth
OB:NAPA Earnings and Revenue Growth March 1st 2025

Taking into account the latest results, the consensus forecast from Napatech's one analyst is for revenues of kr.187.0m in 2025. This reflects a major 61% improvement in revenue compared to the last 12 months. Before this earnings announcement, the analyst had been modelling revenues of kr.335.0m and losses of kr.0.08 per share in 2025. Overall, while there's been a large cut to revenue estimates, the consensus now no longer provides an EPS estimate. This implies that after the latest results, the market believes revenue is more important.

We'd also point out that thatthe analyst has made no major changes to their price target of kr37.01.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Napatech's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 61% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 6.3% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 2.8% annually. So it looks like Napatech is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The clear low-light was that the analyst cut their forecast revenue estimates for Napatech next year. They also downgraded Napatech's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

We have estimates for Napatech from one covering analyst, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Napatech you should be aware of.

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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.