Analysts Have Lowered Expectations For Raketech Group Holding PLC (STO:RAKE) After Its Latest Results

Raketech Group Holding PLC (STO:RAKE) shareholders are probably feeling a little disappointed, since its shares fell 5.0% to kr2.73 in the week after its latest quarterly results. It was a negative result overall, with revenues coming in 11% less than what the analyst expected, at €7.8m. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

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Taking into account the latest results, the current consensus, from the one analyst covering Raketech Group Holding, is for revenues of €34.0m in 2025. This implies a stressful 21% reduction in Raketech Group Holding's revenue over the past 12 months. Per-share statutory losses are expected to explode, reaching €0.07 per share. Before this earnings report, the analyst had been forecasting revenues of €46.0m and earnings per share (EPS) of €0.04 in 2025. So we can see that the consensus has become notably more bearish on Raketech Group Holding's outlook following these results, with a pretty serious reduction to next year's revenue estimates. Furthermore, they expect the business to be loss-making next year, compared to their previous calls for a profit.

Check out our latest analysis for Raketech Group Holding

The consensus price target fell 34% to kr6.65, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 37% by the end of 2025. This indicates a significant reduction from annual growth of 18% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.7% per year. It's pretty clear that Raketech Group Holding's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst is expecting Raketech Group Holding to become unprofitable next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Raketech Group Holding. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Raketech Group Holding 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 1 warning sign for Raketech Group Holding 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.