Knowit AB (publ) Just Missed EPS By 15%: Here's What Analysts Think Will Happen Next

Last week saw the newest quarterly earnings release from Knowit AB (publ) (STO:KNOW), an important milestone in the company's journey to build a stronger business. It was not a great result overall. While revenues of kr1.6b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 15% to hit kr1.40 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Our free stock report includes 1 warning sign investors should be aware of before investing in Knowit. Read for free now.

Following the recent earnings report, the consensus from three analysts covering Knowit is for revenues of kr6.08b in 2025. This implies a perceptible 2.6% decline in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 38% to kr4.22. Before this earnings report, the analysts had been forecasting revenues of kr6.25b and earnings per share (EPS) of kr5.29 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

View our latest analysis for Knowit

The analysts made no major changes to their price target of kr167, suggesting the downgrades are not expected to have a long-term impact on Knowit's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Knowit analyst has a price target of kr195 per share, while the most pessimistic values it at kr145. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. We would highlight that revenue is expected to reverse, with a forecast 3.4% annualised decline to the end of 2025. That is a notable change from historical growth of 16% 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 4.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Knowit is expected to lag 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 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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..

Plus, you should also learn about the 1 warning sign we've spotted with Knowit .

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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.