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

The analyst might have been a bit too bullish on Micro Systemation AB (publ) (STO:MSAB B), given that the company fell short of expectations when it released its full-year results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at kr310m, statutory earnings missed forecasts by an incredible 43%, coming in at just kr0.88 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.

See our latest analysis for Micro Systemation

Following the latest results, Micro Systemation's single analyst are now forecasting revenues of kr329.0m in 2021. This would be a modest 6.1% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 52% to kr1.34. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr357.8m and earnings per share (EPS) of kr1.62 in 2021. The analyst seem less optimistic after the recent results, reducing their sales forecasts and making a substantial drop in earnings per share numbers.

The consensus price target fell 11% to kr41.00, with the weaker earnings outlook clearly leading valuation estimates.

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. Next year brings more of the same, according to the analyst, with revenue forecast to grow 6.1%, in line with its 7.3% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 20% per year. So although Micro Systemation is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Micro Systemation. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Micro Systemation that you should be aware of.

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This article by Simply Wall St is general in nature. 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.
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