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

Bravida Holding AB (publ) (STO:BRAV) just released its latest first-quarter report and things are not looking great. Results look to have been somewhat negative - revenue fell 2.5% short of analyst estimates at kr7.3b, and statutory earnings of kr0.98 per share missed forecasts by 5.3%. The analysts 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. 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 Bravida Holding

Following last week's earnings report, Bravida Holding's four analysts are forecasting 2024 revenues to be kr29.4b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be kr5.74, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr29.2b and earnings per share (EPS) of kr5.70 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of kr95.67, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Bravida Holding analyst has a price target of kr97.00 per share, while the most pessimistic values it at kr95.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bravida Holding's past performance and to peers in the same industry. We would highlight that Bravida Holding's revenue growth is expected to slow, with the forecast 0.6% annualised growth rate until the end of 2024 being well below the historical 8.9% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that Bravida Holding is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Bravida Holding'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 Bravida Holding. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Bravida Holding analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Bravida 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.