Earnings Update: New Wave Group AB (publ) (STO:NEWA B) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

As you might know, New Wave Group AB (publ) (STO:NEWA B) recently reported its quarterly numbers. New Wave Group reported kr2.4b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr1.25 beat expectations, being 4.6% higher than what the analysts expected. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, New Wave Group's three analysts are now forecasting revenues of kr11.3b in 2026. This would be a meaningful 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 35% to kr8.39. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr11.2b and earnings per share (EPS) of kr8.28 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for New Wave Group

There were no changes to revenue or earnings estimates or the price target of kr129, suggesting that the company has met expectations in its recent result. 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 New Wave Group analyst has a price target of kr133 per share, while the most pessimistic values it at kr125. This is a very narrow spread of estimates, implying either that New Wave Group 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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 13% growth on an annualised basis. That is in line with its 11% annual growth 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 revenues grow 5.7% per year. So it's pretty clear that New Wave Group is forecast to grow substantially faster than its industry.

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. Happily, there were no major changes to revenue forecasts, with the business still 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.

With that in mind, we wouldn't be too quick to come to a conclusion on New Wave Group. Long-term earnings power is much more important than next year's profits. We have forecasts for New Wave Group going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - New Wave Group has 2 warning signs (and 1 which is a bit unpleasant) we think 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.