Sdiptech AB (publ) Just Missed EPS By 73%: Here's What Analysts Think Will Happen Next

It's been a mediocre week for Sdiptech AB (publ) (STO:SDIP B) shareholders, with the stock dropping 15% to kr246 in the week since its latest quarterly results. It looks like a pretty bad result, all things considered. Although revenues of kr1.2b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 73% to hit kr0.88 per share. 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. 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 most recent consensus for Sdiptech from four analysts is for revenues of kr6.00b in 2025. If met, it would imply a solid 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 42% to kr15.08. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr6.12b and earnings per share (EPS) of kr15.50 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at kr382, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Sdiptech analyst has a price target of kr400 per share, while the most pessimistic values it at kr360. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Sdiptech's revenue growth is expected to slow, with the forecast 9.3% annualised growth rate until the end of 2025 being well below the historical 24% 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) 4.2% per year. Even after the forecast slowdown in growth, it seems obvious that Sdiptech is also expected to grow faster 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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.

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 estimates - from multiple Sdiptech analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Sdiptech that you need to take into consideration.

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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.