AcadeMedia AB (publ) (STO:ACAD) Analysts Are Pretty Bullish On The Stock After Recent Results

Shareholders of AcadeMedia AB (publ) (STO:ACAD) will be pleased this week, given that the stock price is up 11% to kr65.70 following its latest yearly results. It looks like the results were a bit of a negative overall. While revenues of kr17b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.3% to hit kr5.99 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 AcadeMedia

After the latest results, the two analysts covering AcadeMedia are now predicting revenues of kr18.9b in 2025. If met, this would reflect a notable 8.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 21% to kr7.52. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr19.4b and earnings per share (EPS) of kr8.21 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The average price target climbed 18% to kr86.50despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 8.8% growth on an annualised basis. That is in line with its 7.7% 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 4.7% per year. So although AcadeMedia is expected to maintain its revenue growth rate, it's definitely expected 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 AcadeMedia. They also downgraded AcadeMedia's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 analyst estimates for AcadeMedia going out as far as 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for AcadeMedia 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.