Revenue Beat: Zinzino AB (publ) Beat Analyst Estimates By 6.7%

Last week, you might have seen that Zinzino AB (publ) (STO:ZZ B) released its quarterly result to the market. The early response was not positive, with shares down 2.8% to kr79.90 in the past week. Results overall were respectable, with statutory earnings of kr4.73 per share roughly in line with what the analyst had forecast. Revenues of kr455m came in 6.7% ahead of analyst predictions. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

Check out our latest analysis for Zinzino

After the latest results, the sole analyst covering Zinzino are now predicting revenues of kr2.06b in 2024. If met, this would reflect a solid 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 4.6% to kr5.18. Before this earnings report, the analyst had been forecasting revenues of kr1.92b and earnings per share (EPS) of kr5.05 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analyst has lifted their price target 15% to kr89.70per share.

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. We can infer from the latest estimates that forecasts expect a continuation of Zinzino'shistorical trends, as the 18% annualised revenue growth to the end of 2024 is roughly in line with the 19% annual growth 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 revenues grow 14% per year. So although Zinzino is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Zinzino's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Zinzino going out as far as 2026, and you can see them free on our platform here.

You can also see our analysis of Zinzino's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.