Scandi Standard AB (publ) (STO:SCST) Just Reported And Analysts Have Been Lifting Their Price Targets

The annual results for Scandi Standard AB (publ) (STO:SCST) were released last week, making it a good time to revisit its performance. Scandi Standard reported kr13b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr4.11 beat expectations, being 3.3% higher than what the analysts expected. The analysts 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Scandi Standard

Following last week's earnings report, Scandi Standard's two analysts are forecasting 2024 revenues to be kr12.9b, approximately in line with the last 12 months. Per-share earnings are expected to step up 15% to kr4.72. Before this earnings report, the analysts had been forecasting revenues of kr13.4b and earnings per share (EPS) of kr4.74 in 2024. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The consensus price target rose 5.4% to kr59.00, with the analysts apparently satisfied with the business performance despite lower revenue forecasts.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Scandi Standard's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 1.1% annualised decline to the end of 2024. That is a notable change from historical growth of 7.5% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.1% annually for the foreseeable future. It's pretty clear that Scandi Standard's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Scandi Standard going out as far as 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Scandi Standard .

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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.