Results: Boule Diagnostics AB (publ) Exceeded Expectations And The Consensus Has Updated Its Estimates

Last week saw the newest quarterly earnings release from Boule Diagnostics AB (publ) (STO:BOUL), an important milestone in the company's journey to build a stronger business. It looks like a credible result overall - although revenues of kr148m were what the analysts expected, Boule Diagnostics surprised by delivering a (statutory) profit of kr0.25 per share, an impressive 106% above what was forecast. 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 Boule Diagnostics

Following last week's earnings report, Boule Diagnostics' dual analysts are forecasting 2024 revenues to be kr579.0m, approximately in line with the last 12 months. Statutory earnings per share are predicted to jump 31% to kr0.91. In the lead-up to this report, the analysts had been modelling revenues of kr584.5m and earnings per share (EPS) of kr0.75 in 2024. Although the revenue estimates have not really changed, we can see there's been a massive increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

There's been no major changes to the consensus price target of kr10.90, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Boule Diagnostics' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Boule Diagnostics' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 0.7% growth on an annualised basis. This is compared to a historical growth rate of 5.7% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Boule Diagnostics.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Boule Diagnostics following these results. 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 kr10.90, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

It is also worth noting that we have found 1 warning sign for Boule Diagnostics 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.