Sinch AB (publ) Just Missed EPS By 55%: Here's What Analysts Think Will Happen Next

It's been a pretty great week for Sinch AB (publ) (STO:SINCH) shareholders, with its shares surging 17% to kr34.50 in the week since its latest quarterly results. Statutory earnings per share fell badly short of expectations, coming in at kr0.03, some 55% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at kr6.6b. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the recent earnings report, the consensus from nine analysts covering Sinch is for revenues of kr27.8b in 2025. This implies a discernible 3.8% decline in revenue compared to the last 12 months. Sinch is also expected to turn profitable, with statutory earnings of kr0.31 per share. Before this earnings report, the analysts had been forecasting revenues of kr27.8b and earnings per share (EPS) of kr0.22 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.

View our latest analysis for Sinch

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.3% to kr33.92. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Sinch, with the most bullish analyst valuing it at kr44.00 and the most bearish at kr19.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 7.6% annualised decline to the end of 2025. That is a notable change from historical growth of 24% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 13% per year. It's pretty clear that Sinch's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sinch following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Sinch going out to 2027, 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 Sinch 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.