SaveLend Group AB (publ) (STO:YIELD) Just Reported And Analysts Have Been Cutting Their Estimates

SaveLend Group AB (publ) (STO:YIELD) shareholders are probably feeling a little disappointed, since its shares fell 2.8% to kr6.92 in the week after its latest quarterly results. It was a weak result overall, with SaveLend Group reporting kr40m in revenues, which was 22% less than what the analysts had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for SaveLend Group

Taking into account the latest results, SaveLend Group's dual analysts currently expect revenues in 2023 to be kr175.0m, approximately in line with the last 12 months. Per-share losses are supposed to see a sharp uptick, reaching kr0.29. Yet prior to the latest earnings, the analysts had been forecasting revenues of kr213.0m and losses of kr0.10 per share in 2023. There's been a definite change in sentiment in this update, with the analysts administering a notable cut to next year's revenue estimates, while at the same time increasing their loss per share forecasts.

The consensus price target fell 8.6% to kr16.00, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

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. We would highlight that SaveLend Group's revenue growth is expected to slow, with the forecast 0.09% annualised growth rate until the end of 2023 being well below the historical 45% p.a. growth over the last three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. Factoring in the forecast slowdown in growth, it seems obvious that SaveLend Group is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at SaveLend Group. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for SaveLend Group that you need to be mindful 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.