The Nobia AB (publ) (STO:NOBI) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

There's been a notable change in appetite for Nobia AB (publ) (STO:NOBI) shares in the week since its quarterly report, with the stock down 18% to kr4.12. Following the result, the analysts have 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Nobia

After the latest results, the twin analysts covering Nobia are now predicting revenues of kr12.4b in 2025. If met, this would reflect a credible 3.6% improvement in revenue compared to the last 12 months. Nobia is also expected to turn profitable, with statutory earnings of kr0.063 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr12.4b and earnings per share (EPS) of kr0.057 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the decent improvement in earnings per share expectations following these results.

The consensus price target was unchanged at kr8.25, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Nobia is forecast to grow faster in the future than it has in the past, with revenues expected to display 2.9% annualised growth until the end of 2025. If achieved, this would be a much better result than the 0.3% annual decline 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 3.0% per year. So it looks like Nobia is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Nobia's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 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.

However, before you get too enthused, we've discovered 2 warning signs for Nobia that you should be aware of.

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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.