Earnings Release: Here's Why Analysts Cut Their KlaraBo Sverige AB (publ) (STO:KLARA B) Price Target To kr20.00

Shareholders might have noticed that KlaraBo Sverige AB (publ) (STO:KLARA B) filed its second-quarter result this time last week. The early response was not positive, with shares down 3.3% to kr19.82 in the past week. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on KlaraBo Sverige after the latest results.

See our latest analysis for KlaraBo Sverige

Taking into account the latest results, the most recent consensus for KlaraBo Sverige from one analyst is for revenues of kr638.0m in 2024. If met, it would imply a satisfactory 4.4% increase on its revenue over the past 12 months. In the lead-up to this report, the analyst had been modelling revenues of kr644.0m and earnings per share (EPS) of kr0.83 in 2024. Overall, while the analyst has reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

Intriguingly,the analyst has cut their price target 9.1% to kr20.00 showing a clear decline in sentiment around KlaraBo Sverige's valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that KlaraBo Sverige's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 8.9% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.2% per year. Even after the forecast slowdown in growth, it seems obvious that KlaraBo Sverige is also expected to grow faster than the wider industry.

The Bottom Line

The clear take away from these updates is that the analyst made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

We have estimates for KlaraBo Sverige from one covering analyst, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for KlaraBo Sverige that you should be aware of.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com