OX2 AB (publ) Just Missed Revenue By 5.5%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that OX2 AB (publ) (STO:OX2) filed its quarterly result this time last week. The early response was not positive, with shares down 3.8% to kr72.85 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at kr1.6b, statutory earnings were in line with expectations, at kr1.28 per share. 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.

View our latest analysis for OX2

Following the latest results, OX2's twin analysts are now forecasting revenues of kr7.57b in 2022. This would be a substantial 35% improvement in sales compared to the last 12 months. Per-share earnings are expected to grow 11% to kr1.62. In the lead-up to this report, the analysts had been modelling revenues of kr7.29b and earnings per share (EPS) of kr1.37 in 2022. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a decent improvement in earnings per share in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 8.4% to kr77.50per share.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that OX2 is forecast to grow faster in the future than it has in the past, with revenues expected to display 49% annualised growth until the end of 2022. If achieved, this would be a much better result than the 1.8% annual decline over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 9.8% per year. So it looks like OX2 is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards OX2 following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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 OX2. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

It is also worth noting that we have found 2 warning signs for OX2 (1 is a bit concerning!) that you need to take into consideration.

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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.