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

There's been a notable change in appetite for Inission AB (publ) (STO:INISS B) shares in the week since its quarterly report, with the stock down 11% to kr41.80. Statutory earnings per share fell badly short of expectations, coming in at kr0.65, some 33% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at kr570m. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Inission

Following last week's earnings report, Inission's sole analyst are forecasting 2024 revenues to be kr2.26b, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 5.7% to kr4.39 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr2.24b and earnings per share (EPS) of kr4.54 in 2024. 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 minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target fell 7.7% to kr60.00, with the analyst clearly linking lower forecast earnings to the performance of the stock price.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Inission's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Inission's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.6% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% 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 Inission.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Inission. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Inission's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Inission's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Even so, be aware that Inission is showing 2 warning signs in our investment analysis , you should know about...

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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.