Earnings Update: Sedana Medical AB (publ) (STO:SEDANA) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

Sedana Medical AB (publ) (STO:SEDANA) shareholders are probably feeling a little disappointed, since its shares fell 3.5% to kr17.60 in the week after its latest full-year results. Revenues of kr179m arrived in line with expectations, although statutory losses per share were kr0.11, an impressive 76% smaller than what broker models predicted. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Sedana Medical

Taking into account the latest results, the current consensus from Sedana Medical's dual analysts is for revenues of kr211.0m in 2025. This would reflect a notable 18% increase on its revenue over the past 12 months. Losses are forecast to balloon 226% to kr0.35 per share. Before this latest report, the consensus had been expecting revenues of kr213.5m and kr0.42 per share in losses. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a notable improvement in losses per share in particular.

There's been no major changes to the consensus price target of kr24.50, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock'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 clear from the latest estimates that Sedana Medical's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.1% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 16% 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 analysts reconfirmed their loss per share estimates for next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at kr24.50, with the latest estimates not enough to have an impact on their price targets.

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 should always think about risks though. Case in point, we've spotted 2 warning signs for Sedana Medical you should be aware of, and 1 of them makes us a bit uncomfortable.

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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.