Sedana Medical AB (publ) (STO:SEDANA) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

It's been a mediocre week for Sedana Medical AB (publ) (STO:SEDANA) shareholders, with the stock dropping 13% to kr10.70 in the week since its latest third-quarter results. Revenues of kr41m came in 7.4% below estimates, but statutory losses were slightly better than expected, at kr0.12 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Sedana Medical's lone analyst is for revenues of kr231.1m in 2026. This reflects a notable 17% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 45% to kr0.22. Before this latest report, the consensus had been expecting revenues of kr237.5m and kr0.24 per share in losses. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for next year.

See our latest analysis for Sedana Medical

There was no major change to the kr20.00average price target, suggesting that the adjustments to revenue and earnings are not expected to have a long-term impact on the business.

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. The analyst is definitely expecting Sedana Medical's growth to accelerate, with the forecast 13% annualised growth to the end of 2026 ranking favourably alongside historical growth of 7.0% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% per year. Sedana Medical is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their loss per share estimates for next year. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Yet - earnings are more important to the intrinsic value of the business. The consensus price target held steady at kr20.00, with the latest estimates not enough to have an impact on their price target.

With that in mind, we wouldn't be too quick to come to a conclusion on Sedana Medical. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Sedana Medical going out as far as 2027, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Sedana Medical (including 1 which is a bit concerning) .

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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.