Earnings Update: Here's Why Analysts Just Lifted Their eEducation Albert AB (publ) (STO:ALBERT) Price Target To kr5.85

Shareholders might have noticed that eEducation Albert AB (publ) (STO:ALBERT) filed its quarterly result this time last week. The early response was not positive, with shares down 4.6% to kr2.90 in the past week. The result was fairly weak overall, with revenues of kr42m being 5.4% less than what the analyst had been modelling. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is 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 analyst has changed their earnings models, following these results.

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Taking into account the latest results, the current consensus, from the sole analyst covering eEducation Albert, is for revenues of kr169.0m in 2025. This implies a discernible 4.1% reduction in eEducation Albert's revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 29% to kr2.97. Before this earnings announcement, the analyst had been modelling revenues of kr171.0m and losses of kr3.49 per share in 2025. Although the revenue estimate has not really changed eEducation Albert'sfuture looks a little different to the past, with a favorable reduction in the loss per share forecasts in particular.

View our latest analysis for eEducation Albert

These new estimates led to the consensus price target rising 10% to kr5.85, with lower forecast losses suggesting things could be looking up for eEducation Albert.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 8.1% by the end of 2025. This indicates a significant reduction from annual growth of 17% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.8% per year. It's pretty clear that eEducation Albert's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that eEducation Albert's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

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 eEducation Albert going out as far as 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for eEducation Albert (of which 1 can't be ignored!) 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.