NCAB Group AB (publ) Just Missed EPS By 32%: Here's What Analysts Think Will Happen Next

It's been a good week for NCAB Group AB (publ) (STO:NCAB) shareholders, because the company has just released its latest second-quarter results, and the shares gained 6.4% to kr56.80. It looks like a pretty bad result, all things considered. Although revenues of kr934m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 32% to hit kr0.22 per share. 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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Following the latest results, NCAB Group's four analysts are now forecasting revenues of kr3.84b in 2025. This would be a reasonable 6.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 31% to kr1.29. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr3.88b and earnings per share (EPS) of kr1.47 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

View our latest analysis for NCAB Group

It might be a surprise to learn that the consensus price target was broadly unchanged at kr58.40, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic NCAB Group analyst has a price target of kr69.00 per share, while the most pessimistic values it at kr51.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the NCAB Group's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 13% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.5% 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 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, there were no major changes to revenue forecasts, with the business still 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.

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 forecasts for NCAB Group going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with NCAB Group .

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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.