Checkin.Com Group AB (publ) (STO:CHECK) Just Reported And Analysts Have Been Cutting Their Estimates

It's shaping up to be a tough period for Checkin.Com Group AB (publ) (STO:CHECK), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Unfortunately, Checkin.Com Group delivered a serious earnings miss. Revenues of kr29m were 13% below expectations, and statutory losses ballooned 1,600% to kr0.17 per share. Following the result, the analysts have 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 analysts are expecting for next year.

See our latest analysis for Checkin.Com Group

Following last week's earnings report, Checkin.Com Group's three analysts are forecasting 2024 revenues to be kr123.0m, approximately in line with the last 12 months. The statutory loss per share is expected to greatly reduce in the near future, narrowing 960% to kr0.36. In the lead-up to this report, the analysts had been modelling revenues of kr130.0m and earnings per share (EPS) of kr0.26 in 2024. The analysts have made an abrupt about-face on Checkin.Com Group, administering a minor downgrade to to revenue forecasts and slashing the earnings outlook from a profit to loss.

The average price target fell 6.4% to kr47.75, implicitly signalling that lower earnings per share are a leading indicator for Checkin.Com Group's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Checkin.Com Group at kr62.00 per share, while the most bearish prices it at kr33.50. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 3.8% by the end of 2024. This indicates a significant reduction from annual growth of 34% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 16% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Checkin.Com Group is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts are expecting Checkin.Com Group to become unprofitable next year. On the negative side, they also downgraded their revenue estimates, and 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 Checkin.Com Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Checkin.Com Group going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Checkin.Com Group that 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.