Earnings Update: Attendo AB (publ) (STO:ATT) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

It's been a good week for Attendo AB (publ) (STO:ATT) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.3% to kr45.85. Attendo reported in line with analyst predictions, delivering revenues of kr4.8b and statutory earnings per share of kr0.28, suggesting the business is executing well and in line with its plan. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Attendo

After the latest results, the twin analysts covering Attendo are now predicting revenues of kr18.9b in 2024. If met, this would reflect a modest 4.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 2.9% to kr2.45 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr18.9b and earnings per share (EPS) of kr2.75 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at kr59.50, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

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 can infer from the latest estimates that forecasts expect a continuation of Attendo'shistorical trends, as the 8.8% annualised revenue growth to the end of 2024 is roughly in line with the 9.3% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 12% annually. So it's pretty clear that Attendo is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Attendo. 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 held steady at kr59.50, with the latest estimates not enough to have an impact on their price targets.

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 2026, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Attendo (1 is significant!) 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.

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