Devyser Diagnostics AB (publ) (STO:DVYSR) Analysts Are Cutting Their Estimates: Here's What You Need To Know

Last week saw the newest full-year earnings release from Devyser Diagnostics AB (publ) (STO:DVYSR), an important milestone in the company's journey to build a stronger business. The statutory results were mixed overall, with revenues of kr217m in line with analyst forecasts, but losses of kr3.82 per share, some 6.8% larger than the analysts were predicting. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Devyser Diagnostics

Taking into account the latest results, the consensus forecast from Devyser Diagnostics' four analysts is for revenues of kr296.8m in 2025. This reflects a substantial 37% improvement in revenue compared to the last 12 months. Devyser Diagnostics is also expected to turn profitable, with statutory earnings of kr0.46 per share. Before this earnings report, the analysts had been forecasting revenues of kr316.8m and earnings per share (EPS) of kr0.71 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

The analysts made no major changes to their price target of kr165, suggesting the downgrades are not expected to have a long-term impact on Devyser Diagnostics' valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Devyser Diagnostics analyst has a price target of kr192 per share, while the most pessimistic values it at kr139. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Devyser Diagnostics' growth to accelerate, with the forecast 37% annualised growth to the end of 2025 ranking favourably alongside historical growth of 24% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 19% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Devyser Diagnostics to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Devyser Diagnostics. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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.

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 estimates - from multiple Devyser Diagnostics analysts - going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.