Results: C-Rad AB (publ) Delivered A Surprise Loss And Now Analysts Have New Forecasts

The quarterly results for C-Rad AB (publ) (STO:CRAD B) were released last week, making it a good time to revisit its performance. Things were not great overall, with a surprise (statutory) loss of kr0.24 per share on revenues of kr119m, even though the analyst had been expecting a profit. 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

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Following the latest results, C-Rad's sole analyst are now forecasting revenues of kr492.2m in 2025. This would be an okay 4.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 44% to kr1.38. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr513.6m and earnings per share (EPS) of kr1.92 in 2025. The analyst seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

Check out our latest analysis for C-Rad

The analyst made no major changes to their price target of kr40.00, suggesting the downgrades are not expected to have a long-term impact on C-Rad's valuation.

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 6.4% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% annually. 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 biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for C-Rad. On the negative side, they also downgraded their revenue estimates, and 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. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with C-Rad , and understanding this should be part of your investment process.

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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.