Earnings Miss: C-Rad AB (publ) Missed EPS By 9.8% And Analysts Are Revising Their Forecasts

It's shaping up to be a tough period for C-Rad AB (publ) (STO:CRAD B), which a week ago released some disappointing full-year results that could have a notable impact on how the market views the stock. Results look to have been somewhat negative - revenue fell 2.7% short of analyst estimates at kr469m, and statutory earnings of kr1.67 per share missed forecasts by 9.8%. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

View our latest analysis for C-Rad

Taking into account the latest results, the consensus forecast from C-Rad's sole analyst is for revenues of kr527.3m in 2025. This reflects a meaningful 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 24% to kr2.09. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr522.2m and earnings per share (EPS) of kr2.06 in 2025. The consensus analyst doesn'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.

There were no changes to revenue or earnings estimates or the price target of kr48.00, suggesting that the company has met expectations in its recent result.

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. It's pretty clear that there is an expectation that C-Rad's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 20% 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 18% per year. Factoring in the forecast slowdown in growth, it seems obvious that C-Rad is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analyst reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that C-Rad's revenue is expected to 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for C-Rad going out as far as 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for C-Rad 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.