Earnings Update: OrganoClick AB (publ) (STO:ORGC) Just Reported And Analysts Are Trimming Their Forecasts

Last week, you might have seen that OrganoClick AB (publ) (STO:ORGC) released its full-year result to the market. The early response was not positive, with shares down 3.8% to kr3.00 in the past week. Revenues came in at kr146m, in line with expectations, while statutory losses per share were substantially higher than expected, at kr0.16 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

View our latest analysis for OrganoClick

After the latest results, the lone analyst covering OrganoClick are now predicting revenues of kr170.0m in 2024. If met, this would reflect a notable 17% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 44% to kr0.09. Before this earnings announcement, the analyst had been modelling revenues of kr183.0m and losses of kr0.08 per share in 2024. While this year's revenue estimates dropped there was also a considerable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The average price target fell 70% to kr3.00, implicitly signalling that lower earnings per share are a leading indicator for OrganoClick's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the OrganoClick's past performance and to peers in the same industry. The analyst is definitely expecting OrganoClick's growth to accelerate, with the forecast 17% annualised growth to the end of 2024 ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect OrganoClick to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at OrganoClick. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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 OrganoClick'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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for OrganoClick that 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.