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. Results showed a clear earnings miss, with kr409m revenue coming in 4.5% lower than what the analystexpected. Statutory earnings per share (EPS) of kr0.73 missed the mark badly, arriving some 47% below what was expected. 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

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Taking into account the latest results, Prevas' solitary analyst currently expect revenues in 2025 to be kr1.63b, approximately in line with the last 12 months. Statutory earnings per share are predicted to grow 18% to kr5.95. Before this earnings report, the analyst had been forecasting revenues of kr1.68b and earnings per share (EPS) of kr6.79 in 2025. The analyst seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

View our latest analysis for Prevas

Despite the cuts to forecast earnings, there was no real change to the kr133 price target, showing that the analyst doesn't think the changes have a meaningful impact on its intrinsic value.

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. It's pretty clear that there is an expectation that Prevas' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.2% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Prevas.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at kr133, with the latest estimates not enough to have an impact on their price target.

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 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 4 warning signs with Prevas , and understanding them should be part of your investment process.

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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.