Concentric AB (publ) Just Beat Revenue By 8.8%: Here's What Analysts Think Will Happen Next

It's been a good week for Concentric AB (publ) (STO:COIC) shareholders, because the company has just released its latest quarterly results, and the shares gained 9.3% to kr215. Results overall were respectable, with statutory earnings of kr11.00 per share roughly in line with what the analyst had forecast. Revenues of kr1.0b came in 8.8% ahead of analyst predictions. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

View our latest analysis for Concentric

After the latest results, the consensus from Concentric's solitary analyst is for revenues of kr3.98b in 2024, which would reflect a noticeable 2.4% decline in revenue compared to the last year of performance. Per-share earnings are expected to rise 2.2% to kr10.90. In the lead-up to this report, the analyst had been modelling revenues of kr3.84b and earnings per share (EPS) of kr10.80 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analyst has made a small increase to to revenue forecasts.

The analyst increased their price target 50% to kr275, perhaps signalling that higher revenues are a strong leading indicator for Concentric's valuation.

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. We would highlight that revenue is expected to reverse, with a forecast 3.2% annualised decline to the end of 2024. That is a notable change from historical growth of 21% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.4% per year. It's pretty clear that Concentric's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analyst holding their earnings forecasts steady, in line with previous estimates. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Concentric 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.