Earnings Miss: C-Rad AB (publ) Missed EPS By 71% And Analysts Are Revising Their Forecasts

C-Rad AB (publ) (STO:CRAD B) missed earnings with its latest second-quarter results, disappointing overly-optimistic forecasts. Results showed a clear earnings miss, with kr105m revenue coming in 8.1% lower than what the analystexpected. Statutory earnings per share (EPS) of kr0.12 missed the mark badly, arriving some 71% below what was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

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Following the latest results, C-Rad's sole analyst are now forecasting revenues of kr479.0m in 2025. This would be a reasonable 7.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 43% to kr1.09. Before this earnings report, the analyst had been forecasting revenues of kr482.8m and earnings per share (EPS) of kr1.28 in 2025. The analyst seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

Check out our latest analysis for C-Rad

It might be a surprise to learn that the consensus price target was broadly unchanged at kr39.00, with the analyst clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of C-Rad'shistorical trends, as the 16% annualised revenue growth to the end of 2025 is roughly in line with the 19% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 19% 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 the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

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 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - C-Rad 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.