Results: Sdiptech AB (publ) Exceeded Expectations And The Consensus Has Updated Its Estimates

Sdiptech AB (publ) (STO:SDIP B) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. Sdiptech beat earnings, with revenues hitting kr1.3b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 13%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Sdiptech

Taking into account the latest results, the current consensus from Sdiptech's four analysts is for revenues of kr5.59b in 2024. This would reflect a notable 9.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 19% to kr13.76. In the lead-up to this report, the analysts had been modelling revenues of kr5.45b and earnings per share (EPS) of kr13.83 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.

Even though revenue forecasts increased, there was no change to the consensus price target of kr352, suggesting the analysts are focused on earnings as the driver of value creation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Sdiptech at kr380 per share, while the most bearish prices it at kr320. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sdiptech is an easy business to forecast or the the analysts are all using similar assumptions.

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 highlight that Sdiptech's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2024 being well below the historical 24% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.9% annually. So it's pretty clear that, while Sdiptech's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at kr352, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Sdiptech going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Sdiptech that we have uncovered.

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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.