Prevas AB Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's shaping up to be a tough period for Prevas AB (STO:PREV B), which a week ago released some disappointing second-quarter results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at kr378m, statutory earnings missed forecasts by 11%, coming in at just kr1.90 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Prevas after the latest results.

Check out our latest analysis for Prevas

Taking into account the latest results, the most recent consensus for Prevas from sole analyst is for revenues of kr1.53b in 2023. If met, it would imply a reasonable 5.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 5.6% to kr10.35. Before this earnings report, the analyst had been forecasting revenues of kr1.55b and earnings per share (EPS) of kr10.47 in 2023. So it's pretty clear that, although the analyst has updated their estimates, there's been no major change in expectations for the business following the latest results.

The analyst reconfirmed their price target of kr159, showing that the business is executing well and in line with expectations.

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 Prevas' revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2023 being well below the historical 15% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.8% annually. So it's pretty clear that, while Prevas' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analyst holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. We have analyst estimates for Prevas going out as far as 2025, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Prevas 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.