Analysts Are Updating Their Rugvista Group AB (publ) (STO:RUG) Estimates After Its Annual Results

Rugvista Group AB (publ) (STO:RUG) shareholders are probably feeling a little disappointed, since its shares fell 8.5% to kr97.00 in the week after its latest full-year results. Rugvista Group reported kr707m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr4.80 beat expectations, being 2.7% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Rugvista Group

Taking into account the latest results, the most recent consensus for Rugvista Group from twin analysts is for revenues of kr822.5m in 2022 which, if met, would be a meaningful 16% increase on its sales over the past 12 months. Statutory earnings per share are predicted to ascend 11% to kr5.35. Before this earnings report, the analysts had been forecasting revenues of kr811.0m and earnings per share (EPS) of kr5.44 in 2022. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr161.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Rugvista Group's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 14% annually. Factoring in the forecast slowdown in growth, it looks like Rugvista Group is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 2024, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Rugvista Group 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.