Analysts Just Made A Stunning Upgrade To Their Pandox AB (publ) (STO:PNDX B) Forecasts

Pandox AB (publ) (STO:PNDX B) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. The market seems to be pricing in some improvement in the business too, with the stock up 7.8% over the past week, closing at kr149. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

After the upgrade, the three analysts covering Pandox are now predicting revenues of kr5.1b in 2022. If met, this would reflect a substantial 71% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 2,419% to kr6.99. Prior to this update, the analysts had been forecasting revenues of kr3.7b and earnings per share (EPS) of kr5.03 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Pandox

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Pandox's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 71% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 3.3% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 11% per year. Not only are Pandox's revenues expected to improve, it seems that the analysts are also expecting it to grow faster 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. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Pandox's future.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential risks with Pandox, including its declining profit margins. You can learn more, and discover the 2 other risks we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.