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

Last week, you might have seen that Knowit AB (publ) (STO:KNOW) released its full-year result to the market. The early response was not positive, with shares down 3.3% to kr135 in the past week. Revenues were in line with forecasts, at kr6.4b, although statutory earnings per share came in 11% below what the analysts expected, at kr3.88 per share. Following the result, the analysts have 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Knowit

Following last week's earnings report, Knowit's three analysts are forecasting 2025 revenues to be kr6.35b, approximately in line with the last 12 months. Per-share earnings are expected to shoot up 81% to kr7.03. Before this earnings report, the analysts had been forecasting revenues of kr6.37b and earnings per share (EPS) of kr7.74 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at kr135, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Knowit, with the most bullish analyst valuing it at kr148 and the most bearish at kr125 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 1.1% annualised decline to the end of 2025. That is a notable change from historical growth of 17% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.1% annually for the foreseeable future. It's pretty clear that Knowit's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Knowit. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at kr135, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Knowit. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Knowit going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Knowit that we have uncovered.

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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.