Sectra AB (publ) Just Recorded A 15% EPS Beat: Here's What Analysts Are Forecasting Next

Sectra AB (publ) (STO:SECT B) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at kr766m, statutory earnings beat expectations by a notable 15%, coming in at kr0.53 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

After the latest results, the one analyst covering Sectra are now predicting revenues of kr3.51b in 2026. If met, this would reflect an okay 4.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to fall 12% to kr2.68 in the same period. Before this earnings report, the analyst had been forecasting revenues of kr3.73b and earnings per share (EPS) of kr2.84 in 2026. The analyst are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

Check out our latest analysis for Sectra

What's most unexpected is that the consensus price target rose 20% to kr300, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Sectra's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.9% growth on an annualised basis. This is compared to a historical growth rate of 16% 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. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Sectra.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

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. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.