kr2.50: That's What Analysts Think OrganoClick AB (publ) (STO:ORGC) Is Worth After Its Latest Results

The analyst might have been a bit too bullish on OrganoClick AB (publ) (STO:ORGC), given that the company fell short of expectations when it released its quarterly results last week. It was a pretty negative result overall, with revenues of kr35m missing analyst predictions by 9.2%. Worse, the business reported a statutory loss of kr0.04 per share, much larger than the analyst had forecast prior to the result. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on OrganoClick after the latest results.

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Taking into account the latest results, the most recent consensus for OrganoClick from sole analyst is for revenues of kr135.0m in 2025. If met, it would imply a decent 8.5% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 29% to kr0.14. Before this earnings announcement, the analyst had been modelling revenues of kr140.0m and losses of kr0.10 per share in 2025. While this year's revenue estimates dropped there was also a sizeable expansion in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

View our latest analysis for OrganoClick

The average price target fell 17% to kr2.50, implicitly signalling that lower earnings per share are a leading indicator for OrganoClick's valuation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that OrganoClick's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 8.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that OrganoClick is expected to grow much faster than its 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. They also downgraded OrganoClick's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 OrganoClick going out as far as 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for OrganoClick you should be aware of, and 1 of them is significant.

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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.