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

It's shaping up to be a tough period for Exsitec Holding AB (publ) (STO:EXS), which a week ago released some disappointing second-quarter results that could have a notable impact on how the market views the stock. Exsitec Holding missed earnings this time around, with kr186m revenue coming in 3.0% below what the analyst had modelled. Statutory earnings per share (EPS) of kr1.30 also fell short of expectations by 15%. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

View our latest analysis for Exsitec Holding

Taking into account the latest results, the current consensus from Exsitec Holding's single analyst is for revenues of kr754.0m in 2023. This would reflect a decent 8.6% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to decline 18% to kr5.38 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr759.0m and earnings per share (EPS) of kr5.56 in 2023. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analyst did make a small dip in their earnings per share forecasts.

Despite cutting their earnings forecasts,the analyst has lifted their price target 19% to kr185, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Exsitec Holding's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Exsitec Holding's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 18% growth on an annualised basis. This is compared to a historical growth rate of 33% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.4% annually. Even after the forecast slowdown in growth, it seems obvious that Exsitec Holding is also expected to grow faster than 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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.

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 Exsitec Holding going out as far as 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Exsitec Holding 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.