Swedish Orphan Biovitrum AB (publ) Just Recorded A 8.0% EPS Beat: Here's What Analysts Are Forecasting Next

Last week, you might have seen that Swedish Orphan Biovitrum AB (publ) (STO:SOBI) released its annual result to the market. The early response was not positive, with shares down 2.7% to kr331 in the past week. The result was positive overall - although revenues of kr26b were in line with what the analysts predicted, Swedish Orphan Biovitrum surprised by delivering a statutory profit of kr11.24 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Swedish Orphan Biovitrum

Following the latest results, Swedish Orphan Biovitrum's twelve analysts are now forecasting revenues of kr28.7b in 2025. This would be a meaningful 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 31% to kr14.77. Before this earnings report, the analysts had been forecasting revenues of kr28.4b and earnings per share (EPS) of kr14.12 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of kr367, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock'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. The most optimistic Swedish Orphan Biovitrum analyst has a price target of kr415 per share, while the most pessimistic values it at kr275. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Swedish Orphan Biovitrum'shistorical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 12% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 20% per year. So although Swedish Orphan Biovitrum is expected to maintain its revenue growth rate, it's forecast to grow slower than 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 Swedish Orphan Biovitrum's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Swedish Orphan Biovitrum's revenue 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 Swedish Orphan Biovitrum. 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 Swedish Orphan Biovitrum going out to 2027, and you can see them free on our platform here..

It might also be worth considering whether Swedish Orphan Biovitrum's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.