Analysts Have Made A Financial Statement On Sedana Medical AB (publ)'s (STO:SEDANA) First-Quarter Report

The investors in Sedana Medical AB (publ)'s (STO:SEDANA) will be rubbing their hands together with glee today, after the share price leapt 30% to kr13.28 in the week following its first-quarter results. Revenues of kr57m beat expectations by a respectable 6.5%, although statutory losses per share increased. Sedana Medical lost kr0.24, which was 312% more than what the analyst had included in their models. 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. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

We've discovered 3 warning signs about Sedana Medical. View them for free.

After the latest results, the sole analyst covering Sedana Medical are now predicting revenues of kr208.1m in 2025. If met, this would reflect a notable 11% improvement in revenue compared to the last 12 months. Per-share losses are predicted to creep up to kr0.59. Before this earnings announcement, the analyst had been modelling revenues of kr203.6m and losses of kr0.36 per share in 2025. While this year's revenue estimates increased, there was also a sizeable expansion in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Check out our latest analysis for Sedana Medical

The consensus price target stayed unchanged at kr21.00, seeming to suggest that higher forecast losses are not expected to have a long term impact on the valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Sedana Medical's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.8% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 14% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sedana Medical is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at kr21.00, with the latest estimates not enough to have an impact on their price target.

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 2027, which can be seen for free on our platform here.

You still need to take note of risks, for example - Sedana Medical has 3 warning signs (and 2 which shouldn't be ignored) we think 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.