Earnings Update: Here's Why Analysts Just Lifted Their Inwido AB (publ) (STO:INWI) Price Target To kr188

It's been a pretty great week for Inwido AB (publ) (STO:INWI) shareholders, with its shares surging 16% to kr176 in the week since its latest second-quarter results. Results were roughly in line with estimates, with revenues of kr2.3b and statutory earnings per share of kr11.72. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Inwido

Following last week's earnings report, Inwido's twin analysts are forecasting 2024 revenues to be kr8.84b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be kr9.27, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of kr8.55b and earnings per share (EPS) of kr9.68 in 2024. So it's pretty clear consensus is mixed on Inwido after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

Curiously, the consensus price target rose 5.6% to kr188. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings.

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 Inwido's revenue growth is expected to slow, with the forecast 1.9% annualised growth rate until the end of 2024 being well below the historical 8.5% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.9% per year. Factoring in the forecast slowdown in growth, it seems obvious that Inwido 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 Inwido. 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 analysts 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. We have analyst estimates for Inwido going out as far as 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Inwido 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.

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