kr25.00 - That's What Analysts Think Netel Holding AB (publ) (STO:NETEL) Is Worth After These Results

Shareholders will be ecstatic, with their stake up 31% over the past week following Netel Holding AB (publ)'s (STO:NETEL) latest quarterly results. Revenues were in line with expectations, at kr714m, while statutory losses ballooned to kr0.17 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Netel Holding

Taking into account the latest results, the consensus forecast from Netel Holding's dual analysts is for revenues of kr3.68b in 2024. This reflects a satisfactory 5.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 128% to kr2.11. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr3.70b and earnings per share (EPS) of kr2.49 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

Despite cutting their earnings forecasts,the analysts have lifted their price target 14% to kr25.00, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 7.4% growth on an annualised basis. That is in line with its 9.0% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.5% annually. So it's pretty clear that Netel Holding is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Netel Holding. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Netel Holding. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Netel Holding going out as far as 2026, and you can see them free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with Netel Holding (including 1 which is significant) .

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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.