Prevas AB (STO:PREV B) Just Reported Full-Year Earnings: Have Analysts Changed Their Mind On The Stock?

Shareholders might have noticed that Prevas AB (STO:PREV B) filed its full-year result this time last week. The early response was not positive, with shares down 8.1% to kr114 in the past week. It looks like the results were a bit of a negative overall. While revenues of kr1.5b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.8% to hit kr9.23 per share. Following the result, the analyst has 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. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

See our latest analysis for Prevas

Following the latest results, Prevas' solitary analyst are now forecasting revenues of kr1.54b in 2024. This would be a credible 4.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.0% to kr9.93. Before this earnings report, the analyst had been forecasting revenues of kr1.58b and earnings per share (EPS) of kr10.45 in 2024. The analyst are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the kr144 price target, showing that the analyst doesn't think the changes have a meaningful impact on its intrinsic value.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Prevas' revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2024 being well below the historical 16% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that Prevas is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Prevas. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Prevas. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Prevas going out as far as 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Prevas has 1 warning sign we think you should be aware of.

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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.