NCAB Group AB (publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, NCAB Group AB (publ) (STO:NCAB) last week released its latest yearly, and things did not turn out so great for shareholders. Results look to have been somewhat negative - revenue fell 2.1% short of analyst estimates at kr3.6b, and statutory earnings of kr1.36 per share missed forecasts by 6.7%. The analysts 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 analysts have changed their earnings models, following these results.

View our latest analysis for NCAB Group

Taking into account the latest results, the consensus forecast from NCAB Group's five analysts is for revenues of kr4.13b in 2025. This reflects a solid 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 30% to kr1.78. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr4.28b and earnings per share (EPS) of kr2.04 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

The analysts made no major changes to their price target of kr69.60, suggesting the downgrades are not expected to have a long-term impact on NCAB Group'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. There are some variant perceptions on NCAB Group, with the most bullish analyst valuing it at kr79.00 and the most bearish at kr61.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.0% annually. So although NCAB Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for NCAB Group. They also downgraded NCAB Group's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on NCAB Group. Long-term earnings power is much more important than next year's profits. We have forecasts for NCAB Group going out to 2027, and you can see them free on our platform here.

Even so, be aware that NCAB Group is showing 2 warning signs in our investment analysis , 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.