Earnings Miss: Projektengagemang Sweden AB (publ) Missed EPS By 6.1% And Analysts Are Revising Their Forecasts

Projektengagemang Sweden AB (publ) (STO:PENG B) just released its latest second-quarter report and things are not looking great. Projektengagemang Sweden missed analyst forecasts, with revenues of kr211m and statutory earnings per share (EPS) of kr0.46, falling short by 4.6% and 6.1% respectively. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

View our latest analysis for Projektengagemang Sweden

Following the recent earnings report, the consensus from sole analyst covering Projektengagemang Sweden is for revenues of kr793.0m in 2024. This implies a small 4.5% decline in revenue compared to the last 12 months. Per-share earnings are expected to leap 511% to kr1.23. In the lead-up to this report, the analyst had been modelling revenues of kr823.3m and earnings per share (EPS) of kr1.14 in 2024. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analyst is now more bullish on the company's earnings power.

There's been a 5.7% lift in the price target to kr18.50, with the analyst signalling that the higher earnings forecasts are more relevant to the business than the weaker revenue estimates.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would also point out that the forecast 8.8% annualised revenue decline to the end of 2024 is roughly in line with the historical trend, which saw revenues shrink 10% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.6% per year. So while a broad number of companies are forecast to grow, unfortunately Projektengagemang Sweden is expected to see its revenue affected worse than other companies in the 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 Projektengagemang Sweden following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, earnings are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Even so, be aware that Projektengagemang Sweden is showing 3 warning signs in our investment analysis , 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.

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