Christian Berner Tech Trade AB (publ) Just Missed Revenue By 5.2%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Christian Berner Tech Trade AB (publ) (STO:CBTT B) released its yearly result to the market. The early response was not positive, with shares down 8.8% to kr30.20 in the past week. Revenues came in 5.2% below expectations, at kr947m. Statutory earnings per share were relatively better off, with a per-share profit of kr2.42 being roughly in line with analyst estimates. 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.

See our latest analysis for Christian Berner Tech Trade

Following the latest results, Christian Berner Tech Trade's lone analyst are now forecasting revenues of kr972.0m in 2024. This would be a reasonable 2.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 16% to kr2.80. Before this earnings report, the analyst had been forecasting revenues of kr1.04b and earnings per share (EPS) of kr2.72 in 2024. If anything, the analyst looks to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.

The average price target rose 6.7% to kr40.00, with the analyst signalling that the improved earnings outlook is the key driver of value for shareholders - enough to offset the reduction in revenue estimates.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Christian Berner Tech Trade's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.6% growth on an annualised basis. This is compared to a historical growth rate of 8.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Christian Berner Tech Trade is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Christian Berner Tech Trade following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, earnings are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Christian Berner Tech Trade. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Before you take the next step you should know about the 2 warning signs for Christian Berner Tech Trade 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.