OrganoClick AB (publ) (STO:ORGC) Just Reported Earnings, And Analysts Cut Their Target Price

It's been a mediocre week for OrganoClick AB (publ) (STO:ORGC) shareholders, with the stock dropping 19% to kr3.29 in the week since its latest full-year results. The results overall were pretty much dead in line with analyst forecasts; revenues were kr110m and statutory losses were kr0.34 per share. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

Check out our latest analysis for OrganoClick

After the latest results, the lone analyst covering OrganoClick are now predicting revenues of kr167.0m in 2022. If met, this would reflect a huge 52% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 67% to kr0.11. Before this earnings announcement, the analyst had been modelling revenues of kr171.0m and losses of kr0.05 per share in 2022. 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.

The consensus price target fell 10.0% to kr9.00, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.

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 52% annualised growth to the end of 2022 ranking favourably alongside historical growth of 13% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% 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 take away is that the analyst increased their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

Before you take the next step you should know about the 4 warning signs for OrganoClick that we have uncovered.

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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.