RaySearch Laboratories AB (publ) Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a good week for RaySearch Laboratories AB (publ) (STO:RAY B) shareholders, because the company has just released its latest third-quarter results, and the shares gained 3.2% to kr227. It looks like a credible result overall - although revenues of kr332m were what the analysts expected, RaySearch Laboratories surprised by delivering a (statutory) profit of kr2.09 per share, an impressive 42% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are 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 estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from RaySearch Laboratories' dual analysts is for revenues of kr1.50b in 2026. This reflects a decent 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 39% to kr8.92. Before this earnings report, the analysts had been forecasting revenues of kr1.52b and earnings per share (EPS) of kr8.94 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for RaySearch Laboratories

The analysts reconfirmed their price target of kr350, showing that the business is executing well and in line with expectations.

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 RaySearch Laboratories' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. Compare this to the 8 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 14% per year. Factoring in the forecast slowdown in growth, it looks like RaySearch Laboratories is forecast to grow at about the same rate as the wider industry.

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. 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 RaySearch Laboratories going out as far as 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for RaySearch Laboratories that 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.