Sensys Gatso Group AB (publ) (STO:SGG) Just Reported And Analysts Have Been Lifting Their Price Targets

Sensys Gatso Group AB (publ) (STO:SGG) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. Overall the results were a little better than the analyst was expecting, with revenues beating forecasts by 6.3%to hit kr204m. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is 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 estimate to see what could be in store for next year.

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Following the latest results, Sensys Gatso Group's one analyst are now forecasting revenues of kr747.0m in 2025. This would be an okay 7.4% improvement in revenue compared to the last 12 months. Per-share statutory losses are expected to explode, reaching kr0.62 per share. Before this earnings report, the analyst had been forecasting revenues of kr735.0m and earnings per share (EPS) of kr1.61 in 2025. So despite reconfirming their revenue estimates, the analyst is now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.

View our latest analysis for Sensys Gatso Group

Despite expectations of heavier losses next year,the analyst has lifted their price target 13% to kr62.50, perhaps implying these losses are not expected to be recurring over the long term.

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. It's clear from the latest estimates that Sensys Gatso Group's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Sensys Gatso Group is expected to grow much faster than its industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Sensys Gatso Group dropped from profits to a loss next year. 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. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

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 Sensys Gatso Group going out as far as 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Sensys Gatso Group (1 doesn't sit too well with us!) 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.