Indutrade AB (publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Indutrade AB (publ) (STO:INDT) just released its latest quarterly report and things are not looking great. Indutrade missed earnings this time around, with kr7.7b revenue coming in 4.2% below what the analysts had modelled. Statutory earnings per share (EPS) of kr1.61 also fell short of expectations by 18%. The analysts 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Indutrade

Following last week's earnings report, Indutrade's three analysts are forecasting 2024 revenues to be kr31.5b, approximately in line with the last 12 months. Statutory per share are forecast to be kr7.38, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of kr32.5b and earnings per share (EPS) of kr7.96 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the kr280 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Indutrade analyst has a price target of kr295 per share, while the most pessimistic values it at kr265. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 Indutrade's revenue growth is expected to slow, with the forecast 0.08% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Indutrade is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Indutrade. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Indutrade. 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 Indutrade going out to 2026, and you can see them free on our platform here..

Even so, be aware that Indutrade is showing 1 warning sign in our investment analysis , you should know about...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.