Analysts Have Made A Financial Statement On SinterCast AB (publ)'s (STO:SINT) Second-Quarter Report

Last week, you might have seen that SinterCast AB (publ) (STO:SINT) released its quarterly result to the market. The early response was not positive, with shares down 6.1% to kr107 in the past week. It looks like the results were a bit of a negative overall. While revenues of kr31m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.6% to hit kr1.24 per share. 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've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

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Taking into account the latest results, the current consensus, from the sole analyst covering SinterCast, is for revenues of kr121.0m in 2025. This implies a noticeable 4.3% reduction in SinterCast's revenue over the past 12 months. Statutory earnings per share are forecast to dip 5.2% to kr4.59 in the same period. Before this earnings report, the analyst had been forecasting revenues of kr123.0m and earnings per share (EPS) of kr4.86 in 2025. The analyst seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for SinterCast

It might be a surprise to learn that the consensus price target was broadly unchanged at kr110, with the analyst clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 8.4% by the end of 2025. This indicates a significant reduction from annual growth of 7.7% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.7% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - SinterCast is expected to lag the wider industry.

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. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that SinterCast's revenue is expected to perform worse than the wider industry. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on SinterCast. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with SinterCast (including 1 which is a bit unpleasant) .

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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.