ADDvise Group AB (publ) Just Missed Revenue By 5.6%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that ADDvise Group AB (publ) (STO:ADDV A) filed its third-quarter result this time last week. The early response was not positive, with shares down 2.7% to kr12.45 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at kr404m, statutory earnings were in line with expectations, at kr0.56 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for ADDvise Group

Taking into account the latest results, the most recent consensus for ADDvise Group from twin analysts is for revenues of kr1.80b in 2025. If met, it would imply a meaningful 10% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 39% to kr0.80. In the lead-up to this report, the analysts had been modelling revenues of kr1.81b and earnings per share (EPS) of kr0.90 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

The average price target fell 21% to kr15.00, with reduced earnings forecasts clearly tied to a lower valuation estimate.

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. It's pretty clear that there is an expectation that ADDvise Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.0% growth on an annualised basis. This is compared to a historical growth rate of 37% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 18% annually. Factoring in the forecast slowdown in growth, it seems obvious that ADDvise Group is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for ADDvise Group. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of ADDvise Group's future valuation.

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 ADDvise Group going out as far as 2026, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for ADDvise Group (1 is a bit unpleasant!) that you need to take into consideration.

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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.