OrganoClick AB (publ) (STO:ORGC) Analysts Are Cutting Their Estimates: Here's What You Need To Know

As you might know, OrganoClick AB (publ) (STO:ORGC) last week released its latest quarterly, and things did not turn out so great for shareholders. Unfortunately, OrganoClick delivered a serious earnings miss. Revenues of kr30m were 19% below expectations, and statutory losses ballooned 200% to kr0.06 per share. 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

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After the latest results, the sole analyst covering OrganoClick are now predicting revenues of kr118.0m in 2025. If met, this would reflect a reasonable 2.0% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 14% from last year to kr0.20. Yet prior to the latest earnings, the analyst had been forecasting revenues of kr130.0m and losses of kr0.16 per share in 2025. So it's pretty clear the analyst has mixed opinions on OrganoClick after this update; revenues were downgraded and per-share losses expected to increase.

See our latest analysis for OrganoClick

The consensus price target fell 17% to kr2.50, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that OrganoClick's revenue growth is expected to slow, with the forecast 4.1% annualised growth rate until the end of 2025 being well below the historical 7.1% 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) 3.9% annually. Factoring in the forecast slowdown in growth, it looks like OrganoClick is forecast to grow at about the same rate as 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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs 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.