Nyfosa AB (publ) (STO:NYF) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Last week, you might have seen that Nyfosa AB (publ) (STO:NYF) released its second-quarter result to the market. The early response was not positive, with shares down 6.8% to kr87.85 in the past week. It was a credible result overall, with revenues of kr884m and statutory earnings per share of kr0.28 both in line with analyst estimates, showing that Nyfosa is executing in line with expectations. 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 Nyfosa after the latest results.

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Following last week's earnings report, Nyfosa's three analysts are forecasting 2025 revenues to be kr3.59b, approximately in line with the last 12 months. Statutory earnings per share are predicted to jump 662% to kr5.97. In the lead-up to this report, the analysts had been modelling revenues of kr3.61b and earnings per share (EPS) of kr6.61 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

View our latest analysis for Nyfosa

It might be a surprise to learn that the consensus price target was broadly unchanged at kr110, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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. There are some variant perceptions on Nyfosa, with the most bullish analyst valuing it at kr115 and the most bearish at kr100.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nyfosa's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 3.1% annualised decline to the end of 2025. That is a notable change from historical growth of 12% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.7% per year. It's pretty clear that Nyfosa's revenues are expected to perform substantially worse 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 Nyfosa. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at kr110, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Nyfosa going out to 2027, and you can see them free on our platform here.

Even so, be aware that Nyfosa is showing 3 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

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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.