Stock Analysis

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

It's been a good week for Formpipe Software AB (publ) (STO:FPIP) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.3% to kr29.00. It looks like a pretty bad result, all things considered. Although revenues of kr140m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 96% to hit kr0.01 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

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OM:FPIP Earnings and Revenue Growth August 22nd 2025

After the latest results, the consensus from Formpipe Software's solitary analyst is for revenues of kr238.0m in 2025, which would reflect a stressful 57% decline in revenue compared to the last year of performance. Earnings are expected to tip over into lossmaking territory, with the analyst forecasting statutory losses of -kr0.10 per share in 2025. Before this earnings report, the analyst had been forecasting revenues of kr565.6m and earnings per share (EPS) of kr1.15 in 2025. So we can see that the consensus has become notably more bearish on Formpipe Software's outlook following these results, with a large cut to next year's revenue estimates. Furthermore, they expect the business to be loss-making next year, compared to their previous calls for a profit.

Check out our latest analysis for Formpipe Software

There was no major change to the consensus price target of kr35.00, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 81% by the end of 2025. This indicates a significant reduction from annual growth of 6.3% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Formpipe Software is expected to lag the wider industry.

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The Bottom Line

The biggest low-light for us was that the forecasts for Formpipe Software dropped from profits to a loss next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Formpipe Software. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Formpipe Software going out as far as 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Formpipe Software has 2 warning signs we think 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.

About OM:FPIP

Formpipe Software

Provides software and consulting services for capturing, managing, and distributing information in Sweden, Denmark, rest of Nordic countries, the United Kingdom, Germany, rest of Europe, North America, and internationally.

Excellent balance sheet with moderate growth potential.

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