Earnings Miss: Bravida Holding AB (publ) Missed EPS By 5.5% And Analysts Are Revising Their Forecasts

Bravida Holding AB (publ) (STO:BRAV) just released its latest interim report and things are not looking great. Results look to have been somewhat negative - revenue fell 2.7% short of analyst estimates at kr14b, and statutory earnings of kr1.31 per share missed forecasts by 5.5%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bravida Holding after the latest results.

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Following last week's earnings report, Bravida Holding's six analysts are forecasting 2025 revenues to be kr28.4b, approximately in line with the last 12 months. Per-share earnings are expected to step up 15% to kr6.27. In the lead-up to this report, the analysts had been modelling revenues of kr28.8b and earnings per share (EPS) of kr6.40 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Check out our latest analysis for Bravida Holding

It might be a surprise to learn that the consensus price target was broadly unchanged at kr109, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Bravida Holding at kr112 per share, while the most bearish prices it at kr100.00. This is a very narrow spread of estimates, implying either that Bravida Holding is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 1.0% annualised decline to the end of 2025. That is a notable change from historical growth of 8.8% 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 2.9% annually for the foreseeable future. It's pretty clear that Bravida Holding's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Bravida Holding analysts - going out to 2027, and you can see them free on our platform here.

You can also see whether Bravida Holding is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.