Earnings Miss: Enea AB (publ) Missed EPS And Analysts Are Revising Their Forecasts

It's been a mediocre week for Enea AB (publ) (STO:ENEA) shareholders, with the stock dropping 20% to kr65.40 in the week since its latest first-quarter results. Revenues came in at kr214m, in line with estimates, while Enea reported a statutory loss of kr0.94 per share, well short of prior analyst forecasts for a profit. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Enea after the latest results.

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Taking into account the latest results, the current consensus from Enea's solitary analyst is for revenues of kr952.0m in 2025. This would reflect a satisfactory 4.0% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to descend 17% to kr4.80 in the same period. In the lead-up to this report, the analyst had been modelling revenues of kr952.0m and earnings per share (EPS) of kr4.90 in 2025. The analyst seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for Enea

The average price target fell 14% to kr90.00, with reduced earnings forecasts clearly tied to a lower valuation estimate.

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. One thing stands out from these estimates, which is that Enea is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.4% annualised growth until the end of 2025. If achieved, this would be a much better result than the 0.3% annual decline 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 revenue grow 4.8% per year. So it looks like Enea is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Enea's future valuation.

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 Enea going out as far as 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Enea (1 doesn't sit too well with us!) 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.