Earnings Update: CDON AB (STO:CDON) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

As you might know, CDON AB (STO:CDON) just kicked off its latest second-quarter results with some very strong numbers. The overall earnings picture was okay, with revenues of kr101m beating expectations by 18%. Statutory losses were kr1.98 per share, only marginally better than what the analyst had forecast. 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, CDON's single analyst currently expect revenues in 2025 to be kr430.0m, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 34% to kr5.68. Yet prior to the latest earnings, the analyst had been forecasting revenues of kr407.0m and losses of kr5.38 per share in 2025. So it's pretty clear consensus is mixed on CDON after the new consensus numbers; while the analyst lifted revenue numbers, they also administered a moderate increase in per-share loss expectations.

View our latest analysis for CDON

There was no major change to the consensus price target of kr132, with growing revenues seemingly enough to offset the concern of growing losses.

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. One thing stands out from these estimates, which is that CDON is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.2% annualised growth until the end of 2025. If achieved, this would be a much better result than the 15% annual decline 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 revenue grow 13% per year. Although CDON's revenues are expected to improve, it seems that the analyst is still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at kr132, with the latest estimates not enough to have an impact on their price target.

With that in mind, we wouldn't be too quick to come to a conclusion on CDON. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

It is also worth noting that we have found 3 warning signs for CDON (1 is potentially serious!) that you need to take into consideration.

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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.