Permascand Top Holding AB (publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Permascand Top Holding AB (publ) (STO:PSCAND) just released its latest full-year report and things are not looking great. Results showed a clear earnings miss, with kr405m revenue coming in 3.0% lower than what the analystexpected. Statutory earnings per share (EPS) of kr0.37 missed the mark badly, arriving some 24% below what was expected. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Permascand Top Holding

Following the latest results, Permascand Top Holding's solitary analyst are now forecasting revenues of kr557.0m in 2022. This would be a substantial 38% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to surge 290% to kr1.31. Before this earnings report, the analyst had been forecasting revenues of kr573.3m and earnings per share (EPS) of kr1.37 in 2022. The analyst are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analyst made no major changes to their price target of kr50.00, suggesting the downgrades are not expected to have a long-term impact on Permascand Top Holding's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Permascand Top Holding's rate of growth is expected to accelerate meaningfully, with the forecast 38% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 4.2% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 34% annually. Permascand Top Holding is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Permascand Top Holding that 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.