Truecaller AB (publ) (STO:TRUE B) Just Released Its Full-Year Earnings: Here's What Analysts Think

It's been a good week for Truecaller AB (publ) (STO:TRUE B) shareholders, because the company has just released its latest full-year results, and the shares gained 4.9% to kr72.75. The result was positive overall - although revenues of kr1.9b were in line with what the analysts predicted, Truecaller surprised by delivering a statutory profit of kr1.51 per share, modestly greater than expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

We've discovered 1 warning sign about Truecaller. View them for free.

Taking into account the latest results, the most recent consensus for Truecaller from seven analysts is for revenues of kr2.33b in 2025. If met, it would imply a huge 24% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 26% to kr1.93. In the lead-up to this report, the analysts had been modelling revenues of kr2.41b and earnings per share (EPS) of kr2.04 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

See our latest analysis for Truecaller

The analysts made no major changes to their price target of kr90.57, suggesting the downgrades are not expected to have a long-term impact on Truecaller's valuation. 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. The most optimistic Truecaller analyst has a price target of kr112 per share, while the most pessimistic values it at kr70.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 2025 brings more of the same, according to the analysts, with revenue forecast to display 24% growth on an annualised basis. That is in line with its 25% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. So although Truecaller is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Truecaller's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at kr90.57, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Truecaller analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Truecaller that 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.