K2A Knaust & Andersson Fastigheter AB (publ) Just Missed EPS By 56%: Here's What Analysts Think Will Happen Next

Investors in K2A Knaust & Andersson Fastigheter AB (publ) (STO:K2A B) had a good week, as its shares rose 4.0% to close at kr15.20 following the release of its yearly results. It looks like a pretty bad result, all things considered. Although revenues of kr374m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 56% to hit kr1.08 per share. 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. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

View our latest analysis for K2A Knaust & Andersson Fastigheter

Taking into account the latest results, the consensus forecast from K2A Knaust & Andersson Fastigheter's lone analyst is for revenues of kr486.5m in 2023, which would reflect a sizeable 30% improvement in sales compared to the last 12 months. Earnings are expected to tip over into lossmaking territory, with the analyst forecasting statutory losses of -kr6.62 per share in 2023. Before this latest report, the consensus had been expecting revenues of kr481.2m and kr3.17 per share in losses. So it's pretty clear the analyst has mixed opinions on K2A Knaust & Andersson Fastigheter even after this update; although they reconfirmed their revenue numbers, it came at the cost of a sizeable expansion in per-share losses.

Although the analyst are now forecasting higher losses, the average price target rose 14% to 14, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2023 brings more of the same, according to the analyst, with revenue forecast to display 30% growth on an annualised basis. That is in line with its 37% 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 6.0% per year. So although K2A Knaust & Andersson Fastigheter is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at K2A Knaust & Andersson Fastigheter. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 4 warning signs for K2A Knaust & Andersson Fastigheter (1 shouldn't be ignored!) 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.