Addtech AB (publ.) Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders might have noticed that Addtech AB (publ.) (STO:ADDT B) filed its quarterly result this time last week. The early response was not positive, with shares down 2.1% to kr296 in the past week. It was not a great result overall. While revenues of kr5.1b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 17% to hit kr1.60 per share. Following the result, the analysts have 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 analysts have changed their mind on Addtech AB (publ.) after the latest results.

See our latest analysis for Addtech AB (publ.)

Taking into account the latest results, the consensus forecast from Addtech AB (publ.)'s four analysts is for revenues of kr21.3b in 2025. This reflects a satisfactory 3.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 8.3% to kr6.97. In the lead-up to this report, the analysts had been modelling revenues of kr21.5b and earnings per share (EPS) of kr7.03 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of kr330, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Addtech AB (publ.), with the most bullish analyst valuing it at kr365 and the most bearish at kr290 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. We would highlight that Addtech AB (publ.)'s revenue growth is expected to slow, with the forecast 7.2% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.6% per year. So it's pretty clear that, while Addtech AB (publ.)'s revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at kr330, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Addtech AB (publ.). Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Addtech AB (publ.) going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Addtech AB (publ.) that 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.