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

It's shaping up to be a tough period for CellaVision AB (publ) (STO:CEVI), which a week ago released some disappointing second-quarter results that could have a notable impact on how the market views the stock. CellaVision missed analyst forecasts, with revenues of kr188m and statutory earnings per share (EPS) of kr1.62, falling short by 2.2% and 7.4% respectively. 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.

Check out our latest analysis for CellaVision

Taking into account the latest results, the most recent consensus for CellaVision from four analysts is for revenues of kr764.5m in 2024. If met, it would imply a satisfactory 5.2% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 10% to kr6.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr772.2m and earnings per share (EPS) of kr6.97 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at kr256, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values CellaVision at kr295 per share, while the most bearish prices it at kr235. This is a very narrow spread of estimates, implying either that CellaVision is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 can infer from the latest estimates that forecasts expect a continuation of CellaVision'shistorical trends, as the 11% annualised revenue growth to the end of 2024 is roughly in line with the 10% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 16% annually. So although CellaVision is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for CellaVision going out to 2026, and you can see them free on our platform here.

You can also see our analysis of CellaVision'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.

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