Earnings Miss: Surgical Science Sweden AB (publ) Missed EPS And Analysts Are Revising Their Forecasts

It's been a good week for Surgical Science Sweden AB (publ) (STO:SUS) shareholders, because the company has just released its latest second-quarter results, and the shares gained 7.4% to kr106. It was a pretty negative result overall, with revenues of kr209m missing analyst predictions by 9.4%. Worse, the business reported a statutory loss of kr0.39 per share, a substantial decline on analyst expectations of a profit. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Taking into account the latest results, the current consensus from Surgical Science Sweden's four analysts is for revenues of kr1.07b in 2025. This would reflect a notable 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 42% to kr2.57. Before this earnings report, the analysts had been forecasting revenues of kr1.10b and earnings per share (EPS) of kr3.30 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

View our latest analysis for Surgical Science Sweden

The analysts made no major changes to their price target of kr170, suggesting the downgrades are not expected to have a long-term impact on Surgical Science Sweden's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Surgical Science Sweden analyst has a price target of kr192 per share, while the most pessimistic values it at kr150. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 29% growth on an annualised basis. That is in line with its 33% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 20% per year. So although Surgical Science Sweden is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Surgical Science Sweden's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at kr170, 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. We have forecasts for Surgical Science Sweden going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Surgical Science Sweden that you need to take into consideration.

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.