The AddLife AB (publ) (STO:ALIF B) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

AddLife AB (publ) (STO:ALIF B) shareholders are probably feeling a little disappointed, since its shares fell 6.1% to kr176 in the week after its latest quarterly results. It looks like the results were a bit of a negative overall. While revenues of kr2.6b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.6% to hit kr0.83 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the current consensus from AddLife's three analysts is for revenues of kr10.7b in 2025. This would reflect a modest 2.4% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 27% to kr3.52. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr10.7b and earnings per share (EPS) of kr3.52 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for AddLife

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr193. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic AddLife analyst has a price target of kr200 per share, while the most pessimistic values it at kr185. This is a very narrow spread of estimates, implying either that AddLife is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that AddLife's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.8% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that AddLife is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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 held steady at kr193, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on AddLife. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple AddLife analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with AddLife , and understanding this should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.