Earnings Release: Here's Why Analysts Cut Their Nexam Chemical Holding AB (publ) (STO:NEXAM) Price Target To kr4.00

Shareholders might have noticed that Nexam Chemical Holding AB (publ) (STO:NEXAM) filed its full-year result this time last week. The early response was not positive, with shares down 2.9% to kr3.00 in the past week. The results overall were pretty much dead in line with analyst forecasts; revenues were kr190m and statutory losses were kr0.28 per share. The analyst 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

Check out our latest analysis for Nexam Chemical Holding

Following the latest results, Nexam Chemical Holding's sole analyst are now forecasting revenues of kr219.0m in 2024. This would be a meaningful 15% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 82% to kr0.05. Before this latest report, the consensus had been expecting revenues of kr212.0m and kr0.11 per share in losses. There's been a pretty noticeable increase in sentiment, with the analyst upgrading revenues and making a very favorable reduction to loss per share in particular.

The consensus price target fell 11%, to kr4.00, suggesting that the analyst remain pessimistic on the company, despite the improved earnings and revenue outlook.

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. We can infer from the latest estimates that forecasts expect a continuation of Nexam Chemical Holding'shistorical trends, as the 15% annualised revenue growth to the end of 2024 is roughly in line with the 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So although Nexam Chemical Holding 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 analyst reconfirmed their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Nexam Chemical Holding's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Nexam Chemical Holding going out as far as 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Nexam Chemical Holding has 2 warning signs 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.