ADDvise Group AB (publ) Just Beat EPS By 69%: Here's What Analysts Think Will Happen Next

As you might know, ADDvise Group AB (publ) (STO:ADDV A) just kicked off its latest quarterly results with some very strong numbers. ADDvise Group delivered a significant beat to revenue and earnings per share (EPS) expectations, with sales hitting kr232m, some 17% above indicated. Statutory EPS were kr0.11, an impressive 69% ahead of forecasts. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for ADDvise Group

Taking into account the latest results, the consensus forecast from ADDvise Group's twin analysts is for revenues of kr837.0m in 2022, which would reflect a huge 27% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 180% to kr0.30. Before this earnings report, the analysts had been forecasting revenues of kr813.6m and earnings per share (EPS) of kr0.29 in 2022. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.

The consensus price target increased 16% to kr9.25, with an improved revenue forecast carrying the promise of a more valuable business, in time.

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. The analysts are definitely expecting ADDvise Group's growth to accelerate, with the forecast 61% annualised growth to the end of 2022 ranking favourably alongside historical growth of 18% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that ADDvise Group is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. 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 ADDvise Group going out as far as 2024, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for ADDvise Group (2 are potentially serious!) that you should be aware 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.