SinterCast AB (publ) Just Recorded A 12% EPS Beat: Here's What Analysts Are Forecasting Next

A week ago, SinterCast AB (publ) (STO:SINT) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. SinterCast beat earnings, with revenues hitting kr33m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 12%. The analyst 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

See our latest analysis for SinterCast

Following the latest results, SinterCast's sole analyst are now forecasting revenues of kr156.0m in 2025. This would be a solid 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 14% to kr6.85. Before this earnings report, the analyst had been forecasting revenues of kr154.0m and earnings per share (EPS) of kr6.46 in 2025. The analyst seem to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at kr130, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SinterCast's past performance and to peers in the same industry. It's clear from the latest estimates that SinterCast's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect SinterCast to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards SinterCast following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr130, with the latest estimates not enough to have an impact on their price target.

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 2026, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for SinterCast 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.