Candles Scandinavia AB (publ) Just Missed Earnings; Here's What Analysts Are Forecasting Now

It's been a pretty great week for Candles Scandinavia AB (publ) (STO:CANDLE B) shareholders, with its shares surging 14% to kr28.90 in the week since its latest full-year results. Things were not great overall, with a surprise (statutory) loss of kr1.34 per share on revenues of kr181m, even though the analysts had been expecting a profit. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Candles Scandinavia

Taking into account the latest results, the consensus forecast from Candles Scandinavia's dual analysts is for revenues of kr234.0m in 2025. This reflects a huge 30% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Candles Scandinavia forecast to report a statutory profit of kr0.08 per share. In the lead-up to this report, the analysts had been modelling revenues of kr236.7m and earnings per share (EPS) of kr1.70 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

It might be a surprise to learn that the consensus price target fell 8.3% to kr38.50, with the analysts clearly linking lower forecast earnings to the performance of the stock price.

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. It's clear from the latest estimates that Candles Scandinavia's rate of growth is expected to accelerate meaningfully, with the forecast 30% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 22% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Candles Scandinavia to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Candles Scandinavia. 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Candles Scandinavia's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Candles Scandinavia going out as far as 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Candles Scandinavia 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com