Earnings Update: Scandi Standard AB (publ) (STO:SCST) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

Simply Wall St

Investors in Scandi Standard AB (publ) (STO:SCST) had a good week, as its shares rose 4.1% to close at kr88.10 following the release of its first-quarter results. Results were roughly in line with estimates, with revenues of kr3.4b and statutory earnings per share of kr1.01. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

We've discovered 2 warning signs about Scandi Standard. View them for free.
OM:SCST Earnings and Revenue Growth May 2nd 2025

Taking into account the latest results, the most recent consensus for Scandi Standard from two analysts is for revenues of kr14.0b in 2025. If met, it would imply a credible 5.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 5.1% to kr4.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr13.9b and earnings per share (EPS) of kr4.71 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for Scandi Standard

The consensus price target held steady at kr80.00, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 7.8% growth on an annualised basis. That is in line with its 7.4% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.1% annually. So although Scandi Standard 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 Scandi Standard. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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 Scandi Standard 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 2 warning signs for Scandi Standard you should be aware of.

Valuation is complex, but we're here to simplify it.

Discover if Scandi Standard might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.