Industry Analysts Just Upgraded Their Pandox AB (publ) (STO:PNDX B) Revenue Forecasts By 16%

Pandox AB (publ) (STO:PNDX B) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The revenue forecast for next year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. The market may be pricing in some blue sky too, with the share price gaining 14% to kr130 in the last 7 days. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After the upgrade, the two analysts covering Pandox are now predicting revenues of kr6.7b in 2023. If met, this would reflect a sizeable 59% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to tumble 52% to kr7.84 in the same period. Before this latest update, the analysts had been forecasting revenues of kr5.8b and earnings per share (EPS) of kr7.26 in 2023. Sentiment certainly seems to have improved in recent times, with a solid increase in revenue and a modest lift to earnings per share estimates.

Our analysis indicates that PNDX B is potentially undervalued!

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pandox's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Pandox is forecast to grow faster in the future than it has in the past, with revenues expected to display 45% annualised growth until the end of 2023. If achieved, this would be a much better result than the 7.1% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 8.0% annually. 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 biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Pandox.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Pandox going out as far as 2024, and you can see them 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.