Vestum AB (publ) Just Missed Earnings - But Analysts Have Updated Their Models

Last week saw the newest full-year earnings release from Vestum AB (publ) (STO:VESTUM), an important milestone in the company's journey to build a stronger business. Revenues were in line with forecasts, at kr6.9b, although statutory earnings per share came in 10% below what the analysts expected, at kr0.39 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are 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 analysts have changed their earnings models, following these results.

Check out our latest analysis for Vestum

Taking into account the latest results, the current consensus from Vestum's twin analysts is for revenues of kr7.43b in 2023, which would reflect a reasonable 7.3% increase on its sales over the past 12 months. Statutory earnings per share are forecast to nosedive 34% to kr0.26 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr7.33b and earnings per share (EPS) of kr0.32 in 2023. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

The consensus price target held steady at kr21.50, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Vestum's past performance and to peers in the same industry. We would highlight that Vestum's revenue growth is expected to slow, with the forecast 7.3% annualised growth rate until the end of 2023 being well below the historical 91% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.1% annually. So it's pretty clear that, while Vestum's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Vestum. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Vestum going out as far as 2025, and you can see them free on our platform here.

You still need to take note of risks, for example - Vestum has 2 warning signs (and 1 which is significant) we think you should know about.

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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.