Surgical Science Sweden AB (publ) Just Missed Earnings - But Analysts Have Updated Their Models

Last week, you might have seen that Surgical Science Sweden AB (publ) (STO:SUS) released its quarterly result to the market. The early response was not positive, with shares down 9.1% to kr73.00 in the past week. Statutory earnings per share fell badly short of expectations, coming in at kr0.40, some 45% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at kr264m. The analysts 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Surgical Science Sweden from five analysts is for revenues of kr1.19b in 2026. If met, it would imply a major 23% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 195% to kr4.04. Before this earnings report, the analysts had been forecasting revenues of kr1.23b and earnings per share (EPS) of kr4.50 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

View our latest analysis for Surgical Science Sweden

The consensus price target fell 10.0% to kr140, with the weaker earnings outlook clearly leading valuation estimates. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Surgical Science Sweden, with the most bullish analyst valuing it at kr185 and the most bearish at kr120 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's pretty clear that there is an expectation that Surgical Science Sweden's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 18% growth on an annualised basis. This is compared to a historical growth rate of 30% over the past five years. Compare this to the 55 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 15% per year. Factoring in the forecast slowdown in growth, it looks like Surgical Science Sweden is forecast 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 downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Surgical Science Sweden's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Surgical Science Sweden going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Surgical Science Sweden has 1 warning sign we think you should be aware of.

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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.