NOTE AB (publ) Just Missed EPS By 7.8%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that NOTE AB (publ) (STO:NOTE) released its first-quarter result to the market. The early response was not positive, with shares down 5.0% to kr193 in the past week. It looks like the results were a bit of a negative overall. While revenues of kr962m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.8% to hit kr1.83 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for NOTE from dual analysts is for revenues of kr4.76b in 2026. If met, it would imply a sizeable 26% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 23% to kr11.51. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr4.78b and earnings per share (EPS) of kr11.89 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

See our latest analysis for NOTE

The consensus price target held steady at kr210, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

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 analysts are definitely expecting NOTE's growth to accelerate, with the forecast 36% annualised growth to the end of 2026 ranking favourably alongside historical growth of 10% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect NOTE 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at kr210, with the latest estimates not enough to have an impact on their price targets.

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. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

It is also worth noting that we have found 1 warning sign for NOTE that you need to take into consideration.

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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.