Meko AB (publ) Reported A Surprise Loss, And Analysts Have Updated Their Forecasts

It's been a mediocre week for Meko AB (publ) (STO:MEKO) shareholders, with the stock dropping 19% to kr88.50 in the week since its latest quarterly results. It was a pretty negative result overall, with revenues of kr4.5b missing analyst predictions by 7.7%. Worse, the business reported a statutory loss of kr0.12 per share, a substantial decline on analyst expectations of a profit. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

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Taking into account the latest results, the sole analyst covering Meko provided consensus estimates of kr18.0b revenue in 2025, which would reflect a discernible 3.4% decline over the past 12 months. Statutory earnings per share are forecast to tumble 33% to kr3.16 in the same period. Before this earnings report, the analyst had been forecasting revenues of kr19.0b and earnings per share (EPS) of kr9.39 in 2025. The analyst seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

Check out our latest analysis for Meko

The consensus price target fell 9.0% to kr132, with the weaker earnings outlook clearly leading valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 6.7% by the end of 2025. This indicates a significant reduction from annual growth of 12% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.3% per year. It's pretty clear that Meko's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Meko's future valuation.

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. We have analyst estimates for Meko going out as far as 2027, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Meko (including 1 which is significant) .

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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.