Need To Know: Analysts Just Made A Substantial Cut To Their Xvivo Perfusion AB (publ) (STO:XVIVO) Estimates

Today is shaping up negative for Xvivo Perfusion AB (publ) (STO:XVIVO) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

After the downgrade, the five analysts covering Xvivo Perfusion are now predicting revenues of kr816m in 2024. If met, this would reflect a sizeable 37% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to plummet 32% to kr1.97 in the same period. Previously, the analysts had been modelling revenues of kr926m and earnings per share (EPS) of kr3.50 in 2024. Indeed, we can see that the analysts are a lot more bearish about Xvivo Perfusion's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Xvivo Perfusion

Analysts made no major changes to their price target of kr390, suggesting the downgrades are not expected to have a long-term impact on Xvivo Perfusion's valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Xvivo Perfusion's rate of growth is expected to accelerate meaningfully, with the forecast 37% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 26% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. 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 issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Xvivo Perfusion. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on Xvivo Perfusion after the downgrade.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Xvivo Perfusion going out to 2026, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.