Doro AB (publ) Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders of Doro AB (publ) (STO:DORO) will be pleased this week, given that the stock price is up 19% to kr23.80 following its latest yearly results. It looks like a pretty bad result, all things considered. Although revenues of kr974m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 22% to hit kr1.33 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 estimate suggests is in store for next year.

Check out our latest analysis for Doro

Taking into account the latest results, the consensus forecast from Doro's solitary analyst is for revenues of kr1.02b in 2024. This reflects a modest 4.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 73% to kr2.30. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr1.00b and earnings per share (EPS) of kr2.80 in 2024. The analyst seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

Althoughthe analyst has revised their earnings forecasts for next year, they've also lifted the consensus price target 9.8% to kr27.00, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

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. One thing stands out from these estimates, which is that Doro is forecast to grow faster in the future than it has in the past, with revenues expected to display 4.4% annualised growth until the end of 2024. If achieved, this would be a much better result than the 21% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.8% per year. So although Doro's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment 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 analyst 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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Doro .

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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.