Invisio AB (publ) Just Missed EPS By 60%: Here's What Analysts Think Will Happen Next

Invisio AB (publ) (STO:IVSO) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of kr335m missed by 17%, and statutory earnings per share of kr0.54 fell short of forecasts by 60%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Invisio after the latest results.

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After the latest results, the five analysts covering Invisio are now predicting revenues of kr1.90b in 2025. If met, this would reflect a reasonable 3.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 23% to kr8.05. In the lead-up to this report, the analysts had been modelling revenues of kr1.97b and earnings per share (EPS) of kr8.01 in 2025. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

View our latest analysis for Invisio

The consensus has reconfirmed its price target of kr368, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Invisio's market value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Invisio analyst has a price target of kr420 per share, while the most pessimistic values it at kr310. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Invisio is an easy business to forecast or the the analysts are all using similar 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. It's pretty clear that there is an expectation that Invisio's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.8% growth on an annualised basis. This is compared to a historical growth rate of 28% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 16% annually. Factoring in the forecast slowdown in growth, it seems obvious that Invisio is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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. Even so, long term profitability is more important for the value creation process. The consensus price target held steady at kr368, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Invisio going out to 2027, 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 Invisio 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.