Carasent AB (publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Carasent AB (publ) (STO:CARA) shareholders are probably feeling a little disappointed, since its shares fell 5.9% to kr28.75 in the week after its latest first-quarter results. The results don't look great, especially considering that the analysts had been forecasting a profit and Carasent delivered a statutory loss of kr0.04 per share. Revenues of kr89m did beat expectations by 6.6% though. 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.

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Taking into account the latest results, the most recent consensus for Carasent from four analysts is for revenues of kr344.7m in 2025. If met, it would imply a notable 14% increase on its revenue over the past 12 months. Earnings are expected to improve, with Carasent forecast to report a statutory profit of kr0.14 per share. Before this earnings report, the analysts had been forecasting revenues of kr349.5m and earnings per share (EPS) of kr0.17 in 2025. 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.

Check out our latest analysis for Carasent

Despite cutting their earnings forecasts,the analysts have lifted their price target 12% to kr30.59, suggesting that these impacts are not expected to weigh on the stock's value in the long term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Carasent analyst has a price target of kr39.00 per share, while the most pessimistic values it at kr25.27. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Carasent shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Carasent's revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2025 being well below the historical 27% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 15% annually. Even after the forecast slowdown in growth, it seems obvious that Carasent is also expected to grow faster 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 Carasent. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Carasent. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Carasent going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Carasent's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.