G5 Entertainment AB (publ) Just Missed EPS By 24%: Here's What Analysts Think Will Happen Next

The quarterly results for G5 Entertainment AB (publ) (STO:G5EN) were released last week, making it a good time to revisit its performance. Statutory earnings per share fell badly short of expectations, coming in at kr1.73, some 24% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at kr229m. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are 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 analysts have changed their earnings models, following these results.

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Taking into account the latest results, G5 Entertainment's two analysts currently expect revenues in 2026 to be kr989.0m, approximately in line with the last 12 months. Per-share earnings are expected to surge 31% to kr11.10. Before this earnings report, the analysts had been forecasting revenues of kr977.5m and earnings per share (EPS) of kr12.97 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

See our latest analysis for G5 Entertainment

It might be a surprise to learn that the consensus price target fell 12% to kr188, with the analysts clearly linking lower forecast earnings to the performance of the stock price.

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. We would also point out that the forecast 0.9% annualised revenue decline to the end of 2026 is better than the historical trend, which saw revenues shrink 4.7% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 14% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect G5 Entertainment to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of G5 Entertainment's future valuation.

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 G5 Entertainment going out as far as 2027, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for G5 Entertainment (1 is significant!) that you need to take into consideration.

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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.