I-Tech AB Just Missed Earnings - But Analysts Have Updated Their Models

As you might know, I-Tech AB (STO:ITECH) last week released its latest full-year, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at kr121m, statutory earnings missed forecasts by an incredible 34%, coming in at just kr1.70 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for I-Tech

Taking into account the latest results, the most recent consensus for I-Tech from dual analysts is for revenues of kr142.0m in 2024. If met, it would imply a solid 17% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 54% to kr2.61. In the lead-up to this report, the analysts had been modelling revenues of kr151.5m and earnings per share (EPS) of kr3.16 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 28% to kr65.00.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the I-Tech's past performance and to peers in the same industry. We would highlight that I-Tech's revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2024 being well below the historical 25% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10% per year. So it's pretty clear that, while I-Tech's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for I-Tech. They also downgraded I-Tech's revenue estimates, but industry data suggests that it is expected to grow faster than 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 I-Tech'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 analyst estimates for I-Tech going out as far as 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for I-Tech that you need to take into consideration.

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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.