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

Knowit AB (publ) (STO:KNOW) missed earnings with its latest first-quarter results, disappointing overly-optimistic forecasters. Knowit missed earnings this time around, with kr1.8b revenue coming in 2.9% below what the analysts had modelled. Statutory earnings per share (EPS) of kr2.23 also fell short of expectations by 15%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Knowit after the latest results.

Check out our latest analysis for Knowit

Taking into account the latest results, Knowit's two analysts currently expect revenues in 2024 to be kr6.92b, approximately in line with the last 12 months. Statutory earnings per share are predicted to surge 22% to kr8.99. In the lead-up to this report, the analysts had been modelling revenues of kr7.00b and earnings per share (EPS) of kr9.97 in 2024. 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.

Despite cutting their earnings forecasts,the analysts have lifted their price target 12% to kr176, 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 Knowit's past performance and to peers in the same industry. We would highlight that Knowit's revenue growth is expected to slow, with the forecast 0.3% annualised growth rate until the end of 2024 being well below the historical 21% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that Knowit is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Knowit's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Knowit going out as far as 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Knowit 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.