Analysts Just Published A Bright New Outlook For Swedencare AB (publ)'s (STO:SECARE)

By
Simply Wall St
Published
February 17, 2022
OM:SECARE
Source: Shutterstock

Shareholders in Swedencare AB (publ) (STO:SECARE) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

After this upgrade, Swedencare's two analysts are now forecasting revenues of kr1.5b in 2022. This would be a sizeable 145% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 207% to kr2.14. Prior to this update, the analysts had been forecasting revenues of kr1.2b and earnings per share (EPS) of kr1.89 in 2022. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Swedencare

earnings-and-revenue-growth
OM:SECARE Earnings and Revenue Growth February 17th 2022

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 Swedencare's growth to accelerate, with the forecast 105% annualised growth to the end of 2022 ranking favourably alongside historical growth of 46% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 23% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Swedencare to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. More bullish expectations could be a signal for investors to take a closer look at Swedencare.

Analysts are clearly in love with Swedencare at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as major dilution from new stock issuance in the past year. You can learn more, and discover the 1 other warning sign we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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