TagMaster AB (publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Shareholders might have noticed that TagMaster AB (publ) (STO:TAGM B) filed its quarterly result this time last week. The early response was not positive, with shares down 3.2% to kr21.20 in the past week. It looks like a pretty bad result, given that revenues fell 12% short of analyst estimates at kr99m, and the company reported a statutory loss of kr0.21 per share instead of the profit that the analyst had been forecasting. The analyst 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

View our latest analysis for TagMaster

Following the latest results, TagMaster's sole analyst are now forecasting revenues of kr436.0m in 2024. This would be a credible 6.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to nosedive 57% to kr0.30 in the same period. In the lead-up to this report, the analyst had been modelling revenues of kr466.0m and earnings per share (EPS) of kr1.00 in 2024. The analyst seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

The consensus price target fell 9.4% to kr29.00, with the weaker earnings outlook clearly leading valuation estimates.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that TagMaster's revenue growth is expected to slow, with the forecast 8.8% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.4% annually. Even after the forecast slowdown in growth, it seems obvious that TagMaster is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst 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. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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. We have analyst estimates for TagMaster going out as far as 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for TagMaster that you need to be mindful of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.