Stock Analysis

Net Insight AB (publ) Just Missed EPS By 7.0%: Here's What Analysts Think Will Happen Next

OM:NETI B
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Net Insight AB (publ) (STO:NETI B) just released its latest annual report and things are not looking great. Net Insight missed analyst forecasts, with revenues of kr608m and statutory earnings per share (EPS) of kr0.20, falling short by 3.7% and 7.0% respectively. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Net Insight

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OM:NETI B Earnings and Revenue Growth February 22nd 2025

Taking into account the latest results, the most recent consensus for Net Insight from twin analysts is for revenues of kr670.0m in 2025. If met, it would imply a solid 10% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 16% to kr0.24. In the lead-up to this report, the analysts had been modelling revenues of kr708.5m and earnings per share (EPS) of kr0.27 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the kr8.00 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 10% growth on an annualised basis. That is in line with its 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.2% annually. So it's pretty clear that Net Insight is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Net Insight. They also downgraded Net Insight'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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Net Insight going out as far as 2027, and you can see them free on our platform here.

You can also see our analysis of Net Insight's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Valuation is complex, but we're here to simplify it.

Discover if Net Insight might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.