Results: Net Insight AB (publ) Delivered A Surprise Loss And Now Analysts Have New Forecasts

There's been a major selloff in Net Insight AB (publ) (STO:NETI B) shares in the week since it released its quarterly report, with the stock down 37% to kr2.92. Revenues missed expectations, with revenue of kr115m falling 19% short of forecasts. Earnings correspondingly dipped, with Net Insight reporting a statutory loss of kr0.04 per share, where the analysts were expecting a profit. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

We've discovered 2 warning signs about Net Insight. View them for free.

Following the latest results, Net Insight's dual analysts are now forecasting revenues of kr636.0m in 2025. This would be a notable 9.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 52% to kr0.19. In the lead-up to this report, the analysts had been modelling revenues of kr652.9m and earnings per share (EPS) of kr0.24 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

Check out our latest analysis for Net Insight

The analysts made no major changes to their price target of kr8.00, suggesting the downgrades are not expected to have a long-term impact on Net Insight's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Net Insight'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 13% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 1.9% per year. So although Net Insight 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at kr8.00, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

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

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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.