Starbreeze AB (publ) (STO:STAR B) Just Released Its Yearly Earnings: Here's What Analysts Think

It's been a good week for Starbreeze AB (publ) (STO:STAR B) shareholders, because the company has just released its latest yearly results, and the shares gained 5.2% to kr0.21. The results look positive overall; while revenues of kr186m were in line with analyst predictions, statutory losses were 7.1% smaller than expected, with Starbreeze losing kr0.13 per share. Following the result, the analysts have 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Starbreeze

Taking into account the latest results, the current consensus from Starbreeze's dual analysts is for revenues of kr207.4m in 2025. This would reflect a decent 12% increase on its revenue over the past 12 months. Before this latest report, the consensus had been expecting revenues of kr208.0m and kr0.05 per share in losses. Although the revenue estimates have not really changed, we can see there's been a earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

There's been no real change to the consensus price target of kr0.34, with Starbreeze seemingly executing in line with expectations.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Starbreeze's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 0.2% annually. Even after the forecast slowdown in growth, it seems obvious that Starbreeze is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been a clear step-change in belief around the business' prospects, with the analysts now expecting Starbreeze to become profitable next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Starbreeze , and understanding these should be part of your investment process.

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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.