OssDsign AB (publ) (STO:OSSD) Just Reported Earnings, And Analysts Cut Their Target Price

OssDsign AB (publ) (STO:OSSD) just released its latest quarterly results and things are looking bullish. OssDsign outperformed estimates, with revenues of kr36m beating estimates by 10%. Statutory losses were kr0.10, 38% smaller thanthe analysts expected. The analysts 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on OssDsign after the latest results.

View our latest analysis for OssDsign

Taking into account the latest results, the most recent consensus for OssDsign from four analysts is for revenues of kr172.1m in 2025. If met, it would imply a huge 35% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 55% to kr0.42. Yet prior to the latest earnings, the analysts had been forecasting revenues of kr168.8m and losses of kr0.44 per share in 2025. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.

Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 6.3% to kr12.33. It looks likethe analysts have become less optimistic about the overall business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on OssDsign, with the most bullish analyst valuing it at kr14.00 and the most bearish at kr11.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that OssDsign's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 27% growth on an annualised basis. This is compared to a historical growth rate of 43% 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% annually. So it's pretty clear that, while OssDsign's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 forecasts for OssDsign going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for OssDsign you should know about.

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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.