Earnings Miss: C-Rad AB (publ) Missed EPS By 5.5% And Analysts Are Revising Their Forecasts

It's been a good week for C-Rad AB (publ) (STO:CRAD B) shareholders, because the company has just released its latest yearly results, and the shares gained 7.0% to kr52.30. It looks like the results were a bit of a negative overall. While revenues of kr261m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.5% to hit kr0.74 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on C-Rad after the latest results.

View our latest analysis for C-Rad

Taking into account the latest results, the current consensus from C-Rad's twin analysts is for revenues of kr312.2m in 2022, which would reflect a notable 20% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 64% to kr1.22. Before this earnings report, the analysts had been forecasting revenues of kr312.5m and earnings per share (EPS) of kr1.23 in 2022. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr78.00.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 20% growth on an annualised basis. That is in line with its 18% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. It's clear that while C-Rad's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at kr78.00, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on C-Rad. Long-term earnings power is much more important than next year's profits. We have analyst estimates for C-Rad going out as far as 2024, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.