Revenue Downgrade: Here's What Analysts Forecast For Pandox AB (publ) (STO:PNDX B)

The latest analyst coverage could presage a bad day for Pandox AB (publ) (STO:PNDX B), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

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After the downgrade, the consensus from Pandox's two analysts is for revenues of kr5.7b in 2025, which would reflect a sizeable 21% decline in sales compared to the last year of performance. Per-share earnings are expected to jump 57% to kr10.94. Prior to this update, the analysts had been forecasting revenues of kr7.5b and earnings per share (EPS) of kr9.50 in 2025. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also granting a decent improvement in to the earnings per share numbers.

Check out our latest analysis for Pandox

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 37% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 19% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.7% annually for the foreseeable future. It's pretty clear that Pandox's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Pandox's revenues are expected to grow slower than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Pandox after today.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Pandox going out as far as 2027, and you can see them free 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.