Earnings Update: Here's Why Analysts Just Lifted Their Lime Technologies AB (publ) (STO:LIME) Price Target To kr330

Lime Technologies AB (publ) (STO:LIME) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results were roughly in line with estimates, with revenues of kr577m and statutory earnings per share of kr6.21. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Lime Technologies

Taking into account the latest results, the most recent consensus for Lime Technologies from two analysts is for revenues of kr716.5m in 2024. If met, it would imply a major 24% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 21% to kr7.58. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr665.5m and earnings per share (EPS) of kr8.17 in 2024. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a major to revenue, the consensus also made a small dip in its earnings per share forecasts.

Curiously, the consensus price target rose 5.6% to kr330. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Lime Technologies' growth to accelerate, with the forecast 24% annualised growth to the end of 2024 ranking favourably alongside historical growth of 17% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Lime Technologies to grow faster 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 Lime Technologies. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Lime Technologies going out as far as 2026, and you can see them free on our platform here.

It might also be worth considering whether Lime Technologies' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.