Atvexa AB (publ) (STO:ATVEXA B) Just Released Its First-Quarter Earnings: Here's What Analysts Think

Atvexa AB (publ) (STO:ATVEXA B) investors will be delighted, with the company turning in some strong numbers with its latest results. Results overall were credible, with revenues arriving 3.1% better than analyst forecasts at kr505m. Higher revenues also resulted in lower statutory losses, which were kr0.87 per share, some 3.1% smaller than the analysts expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Atvexa after the latest results.

See our latest analysis for Atvexa

Taking into account the latest results, the current consensus from Atvexa's dual analysts is for revenues of kr2.02b in 2021, which would reflect a notable 11% increase on its sales over the past 12 months. Statutory earnings per share are predicted to surge 39% to kr5.62. In the lead-up to this report, the analysts had been modelling revenues of kr1.98b and earnings per share (EPS) of kr5.27 in 2021. So the consensus seems to have become somewhat more optimistic on Atvexa's earnings potential following these results.

The consensus price target was unchanged at kr91.00, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

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. We would highlight that Atvexa's revenue growth is expected to slow, with forecast 11% increase next year well below the historical 25%p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.3% next year. So it's pretty clear that, while Atvexa's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Atvexa's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are 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.

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 Atvexa going out as far as 2025, and you can see them free on our platform here.

Even so, be aware that Atvexa is showing 1 warning sign in our investment analysis , you should know about...

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