CombinedX AB (publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's shaping up to be a tough period for CombinedX AB (publ) (STO:CX), which a week ago released some disappointing second-quarter results that could have a notable impact on how the market views the stock. Results showed a clear earnings miss, with kr251m revenue coming in 8.5% lower than what the analystexpected. Statutory earnings per share (EPS) of kr0.56 missed the mark badly, arriving some 56% below what was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. 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 CombinedX

Following the latest results, CombinedX's sole analyst are now forecasting revenues of kr961.0m in 2024. This would be a meaningful 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to drop 12% to kr3.07 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr997.2m and earnings per share (EPS) of kr4.40 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

The analyst made no major changes to their price target of kr65.00, suggesting the downgrades are not expected to have a long-term impact on CombinedX's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that CombinedX's rate of growth is expected to accelerate meaningfully, with the forecast 30% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 15% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect CombinedX to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CombinedX. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at kr65.00, with the latest estimates not enough to have an impact on their price target.

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. We have analyst estimates for CombinedX going out as far as 2026, and you can see them free on our platform here.

Even so, be aware that CombinedX is showing 3 warning signs in our investment analysis , you should know about...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com