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

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. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at kr235m, statutory earnings missed forecasts by an incredible 56%, coming in at just kr0.31 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from CombinedX's sole analyst is for revenues of kr959.1m in 2025. This reflects a modest 3.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 9.0% to kr2.61. Before this earnings report, the analyst had been forecasting revenues of kr982.4m and earnings per share (EPS) of kr3.60 in 2025. The analyst seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

Check out our latest analysis for CombinedX

The consensus price target fell 8.3% to kr55.00, with the weaker earnings outlook clearly leading valuation estimates.

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 would highlight that CombinedX's revenue growth is expected to slow, with the forecast 6.6% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.9% per year. Even after the forecast slowdown in growth, it seems obvious that CombinedX is also expected 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. They also downgraded CombinedX's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of CombinedX's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on CombinedX. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with CombinedX , and understanding them 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.