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

It's shaping up to be a tough period for RVRC Holding AB (publ) (STO:RVRC), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at kr350m, statutory earnings missed forecasts by 17%, coming in at just kr0.40 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for RVRC Holding

After the latest results, the dual analysts covering RVRC Holding are now predicting revenues of kr2.04b in 2025. If met, this would reflect a solid 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 6.3% to kr2.92. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr2.07b and earnings per share (EPS) of kr2.96 in 2025. 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 kr62.50.

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. It's pretty clear that there is an expectation that RVRC Holding's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.4% annually. So it's pretty clear that, while RVRC Holding's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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.

With that in mind, we wouldn't be too quick to come to a conclusion on RVRC Holding. Long-term earnings power is much more important than next year's profits. We have analyst estimates for RVRC Holding going out as far as 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with RVRC Holding , and understanding it should be part of your investment process.

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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.