Enad Global 7 AB (publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The analyst might have been a bit too bullish on Enad Global 7 AB (publ) (STO:EG7), given that the company fell short of expectations when it released its yearly results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at kr2.1b, statutory earnings missed forecasts by an incredible 33%, coming in at just kr1.76 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

View our latest analysis for Enad Global 7

Taking into account the latest results, the current consensus, from the single analyst covering Enad Global 7, is for revenues of kr1.82b in 2024. This implies a definite 13% reduction in Enad Global 7's revenue over the past 12 months. Statutory earnings per share are forecast to dip 8.6% to kr1.61 in the same period. In the lead-up to this report, the analyst had been modelling revenues of kr1.98b and earnings per share (EPS) of kr2.13 in 2024. The analyst seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

It'll come as no surprise then, to learn that the analyst has cut their price target 12% to kr44.00.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 13% by the end of 2024. This indicates a significant reduction from annual growth of 42% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.7% annually for the foreseeable future. It's pretty clear that Enad Global 7's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Enad Global 7'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. We have analyst estimates for Enad Global 7 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 - Enad Global 7 has 1 warning sign 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.