The NCAB Group AB (publ) (STO:NCAB) Yearly Results Are Out And Analysts Have Published New Forecasts

Last week, you might have seen that NCAB Group AB (publ) (STO:NCAB) released its annual result to the market. The early response was not positive, with shares down 4.9% to kr61.95 in the past week. Revenues of kr4.1b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr2.15, missing estimates by 3.2%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for NCAB Group

Following the recent earnings report, the consensus from three analysts covering NCAB Group is for revenues of kr3.97b in 2024. This implies a small 2.9% decline in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 3.1% to kr2.09 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr3.99b and earnings per share (EPS) of kr2.11 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of kr73.00, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values NCAB Group at kr78.00 per share, while the most bearish prices it at kr70.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We would highlight that revenue is expected to reverse, with a forecast 2.9% annualised decline to the end of 2024. That is a notable change from historical growth of 24% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.8% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - NCAB Group is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for NCAB Group going out to 2026, and you can see them free on our platform here..

Even so, be aware that NCAB Group is showing 1 warning sign 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.