BioArctic AB (publ) (STO:BIOA B) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

It's been a pretty great week for BioArctic AB (publ) (STO:BIOA B) shareholders, with its shares surging 12% to kr295 in the week since its latest quarterly results. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the consensus from BioArctic's five analysts is for revenues of kr1.24b in 2026, which would reflect a concerning 35% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to plummet 70% to kr3.35 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr1.22b and earnings per share (EPS) of kr2.87 in 2026. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice gain to earnings per share in particular.

See our latest analysis for BioArctic

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of kr297, suggesting that the forecast performance does not have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on BioArctic, with the most bullish analyst valuing it at kr355 and the most bearish at kr230 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await BioArctic shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 29% by the end of 2026. This indicates a significant reduction from annual growth of 62% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - BioArctic is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around BioArctic's earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse 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.

With that in mind, we wouldn't be too quick to come to a conclusion on BioArctic. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for BioArctic going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for BioArctic 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.