Analyst Estimates: Here's What Brokers Think Of Truecaller AB (publ) (STO:TRUE B) After Its Second-Quarter Report

Shareholders might have noticed that Truecaller AB (publ) (STO:TRUE B) filed its second-quarter result this time last week. The early response was not positive, with shares down 6.5% to kr32.70 in the past week. Revenues of kr456m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr0.35, missing estimates by 2.8%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Truecaller

Taking into account the latest results, the consensus forecast from Truecaller's six analysts is for revenues of kr1.86b in 2024. This reflects a decent 8.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 11% to kr1.53. In the lead-up to this report, the analysts had been modelling revenues of kr1.89b and earnings per share (EPS) of kr1.49 in 2024. So the consensus seems to have become somewhat more optimistic on Truecaller's earnings potential following these results.

The consensus price target was unchanged at kr54.83, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Truecaller, with the most bullish analyst valuing it at kr71.00 and the most bearish at kr43.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 21% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 16% annually. It's clear that while Truecaller's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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 Truecaller following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at kr54.83, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Truecaller going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Truecaller Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com