Netel Holding AB (publ) Just Missed EPS By 74%: Here's What Analysts Think Will Happen Next

Netel Holding AB (publ) (STO:NETEL) just released its latest third-quarter report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at kr893m, statutory earnings missed forecasts by an incredible 74%, coming in at just kr0.17 per share. 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 Netel Holding after the latest results.

See our latest analysis for Netel Holding

Taking into account the latest results, the current consensus from Netel Holding's dual analysts is for revenues of kr3.99b in 2025. This would reflect a solid 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 159% to kr2.56. In the lead-up to this report, the analysts had been modelling revenues of kr3.96b and earnings per share (EPS) of kr2.90 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

It might be a surprise to learn that the consensus price target fell 12% to kr25.00, with the analysts clearly linking lower forecast earnings to the performance of the stock price.

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 Netel Holding's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 9.6% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.1% annually. So it's pretty clear that, while Netel Holding's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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. We have analyst estimates for Netel Holding going out as far as 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for Netel Holding (1 is a bit unpleasant!) that we have uncovered.

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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.