Boule Diagnostics AB (publ) Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts

It's been a mediocre week for Boule Diagnostics AB (publ) (STO:BOUL) shareholders, with the stock dropping 14% to kr8.64 in the week since its latest second-quarter results. It was a pretty negative result overall, with revenues of kr137m missing analyst predictions by 5.7%. Worse, the business reported a statutory loss of kr0.04 per share, a substantial decline on analyst expectations of a profit. 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.

See our latest analysis for Boule Diagnostics

Following last week's earnings report, Boule Diagnostics' twin analysts are forecasting 2024 revenues to be kr568.9m, approximately in line with the last 12 months. Per-share earnings are expected to ascend 17% to kr0.64. Before this earnings report, the analysts had been forecasting revenues of kr576.6m and earnings per share (EPS) of kr0.90 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

The average price target fell 13% to kr9.50, with reduced earnings forecasts clearly tied to a lower valuation estimate.

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. We would highlight that revenue is expected to reverse, with a forecast 1.3% annualised decline to the end of 2024. That is a notable change from historical growth of 6.0% 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 16% annually for the foreseeable future. It's pretty clear that Boule Diagnostics' revenues are expected to perform substantially worse 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 Boule Diagnostics. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Boule Diagnostics going out as far as 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Boule Diagnostics has 1 warning sign we think 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