Rusta AB (publ) Just Missed Earnings - But Analysts Have Updated Their Models

Rusta AB (publ) (STO:RUSTA) shareholders are probably feeling a little disappointed, since its shares fell 9.1% to kr63.80 in the week after its latest quarterly results. Statutory earnings per share fell badly short of expectations, coming in at kr1.10, some 30% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at kr3.2b. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, Rusta's dual analysts are now forecasting revenues of kr12.6b in 2026. This would be a credible 5.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 22% to kr3.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr12.8b and earnings per share (EPS) of kr3.77 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

See our latest analysis for Rusta

The average price target fell 18% to kr70.00, with reduced earnings forecasts clearly tied to a lower valuation estimate.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 7.1% growth on an annualised basis. That is in line with its 6.3% annual growth over the past year. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 14% annually. So although Rusta is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Rusta. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Rusta going out as far as 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.