Dynavox Group AB (publ) (STO:DYVOX) Released Earnings Last Week And Analysts Lifted Their Price Target To kr114

Investors in Dynavox Group AB (publ) (STO:DYVOX) had a good week, as its shares rose 9.3% to close at kr123 following the release of its second-quarter results. It was a workmanlike result, with revenues of kr603m coming in 2.0% ahead of expectations, and statutory earnings per share of kr1.37, in line with analyst appraisals. 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.

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Taking into account the latest results, the consensus forecast from Dynavox Group's four analysts is for revenues of kr2.48b in 2025. This reflects a decent 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 4.7% to kr1.35 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr2.43b and earnings per share (EPS) of kr1.63 in 2025. So it's pretty clear the analysts have mixed opinions on Dynavox Group after the latest results; even though they upped their revenue numbers, it came at the cost of a substantial drop in per-share earnings expectations.

See our latest analysis for Dynavox Group

The analysts also upgraded Dynavox Group's price target 14% to kr114, implying that the higher revenue expected to generate enough value to offset the forecast decline in earnings. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Dynavox Group analyst has a price target of kr150 per share, while the most pessimistic values it at kr79.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Dynavox Group'shistorical trends, as the 21% annualised revenue growth to the end of 2025 is roughly in line with the 25% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.4% per year. So it's pretty clear that Dynavox Group is forecast to grow substantially faster than its 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. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Dynavox Group going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 4 warning signs for Dynavox Group (of which 1 makes us a bit uncomfortable!) you should know about.

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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.