Invisio AB (publ) Beat Revenue Forecasts By 21%: Here's What Analysts Are Forecasting Next

A week ago, Invisio AB (publ) (STO:IVSO) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Statutory earnings beat expectations, with revenues of kr553m coming in a massive 21% ahead of forecasts, while earnings per share (eps) of kr1.62 beat expectations by 3.5%. 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. 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 Invisio

Taking into account the latest results, the consensus forecast from Invisio's four analysts is for revenues of kr1.69b in 2024. This reflects a solid 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 26% to kr5.64. Before this earnings report, the analysts had been forecasting revenues of kr1.72b and earnings per share (EPS) of kr5.92 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at kr264, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Invisio, with the most bullish analyst valuing it at kr265 and the most bearish at kr263 per share. This is a very narrow spread of estimates, implying either that Invisio is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 can infer from the latest estimates that forecasts expect a continuation of Invisio'shistorical trends, as the 24% annualised revenue growth to the end of 2024 is roughly in line with the 25% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. So although Invisio is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr264, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Invisio going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Invisio (1 is potentially serious) 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.

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