Devyser Diagnostics AB (publ) (STO:DVYSR) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

The analysts might have been a bit too bullish on Devyser Diagnostics AB (publ) (STO:DVYSR), given that the company fell short of expectations when it released its first-quarter results last week. It was a pretty negative result overall, with revenues of kr55m missing analyst predictions by 3.8%. Worse, the business reported a statutory loss of kr1.23 per share, much larger than the analysts had forecast prior to the result. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Devyser Diagnostics after the latest results.

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Following the latest results, Devyser Diagnostics' four analysts are now forecasting revenues of kr274.3m in 2025. This would be a sizeable 24% improvement in revenue compared to the last 12 months. Statutory losses are forecast to balloon 92% to kr0.34 per share. In the lead-up to this report, the analysts had been modelling revenues of kr294.0m and earnings per share (EPS) of kr0.50 in 2025. The analysts have made an abrupt about-face on Devyser Diagnostics, administering a minor downgrade to to revenue forecasts and slashing the earnings outlook from a profit to loss.

See our latest analysis for Devyser Diagnostics

The average price target was broadly unchanged at kr165, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. 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. There are some variant perceptions on Devyser Diagnostics, with the most bullish analyst valuing it at kr193 and the most bearish at kr142 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 33% annualised growth to the end of 2025 ranking favourably alongside historical growth of 26% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Devyser Diagnostics is expected to grow much faster than its industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Devyser Diagnostics dropped from profits to a loss next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at kr165, 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 Devyser Diagnostics. Long-term earnings power is much more important than next year's profits. We have forecasts for Devyser Diagnostics 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.