Earnings Beat: Xvivo Perfusion AB (publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Last week, you might have seen that Xvivo Perfusion AB (publ) (STO:XVIVO) released its annual result to the market. The early response was not positive, with shares down 9.1% to kr289 in the past week. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at kr598m, statutory earnings beat expectations by a notable 194%, coming in at kr3.07 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Xvivo Perfusion

After the latest results, the five analysts covering Xvivo Perfusion are now predicting revenues of kr856.9m in 2024. If met, this would reflect a sizeable 43% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 5.5% to kr3.07. Before this earnings report, the analysts had been forecasting revenues of kr869.8m and earnings per share (EPS) of kr3.54 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 5.0% to kr401, suggesting that these impacts are not expected to weigh on the stock's value in the long term. 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. The most optimistic Xvivo Perfusion analyst has a price target of kr452 per share, while the most pessimistic values it at kr340. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Xvivo Perfusion's growth to accelerate, with the forecast 43% annualised growth to the end of 2024 ranking favourably alongside historical growth of 26% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 15% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Xvivo Perfusion to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Xvivo Perfusion. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 Xvivo Perfusion going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Xvivo Perfusion that we have uncovered.

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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.