Earnings Beat: Tobii Dynavox AB (publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

As you might know, Tobii Dynavox AB (publ) (STO:TDVOX) just kicked off its latest second-quarter results with some very strong numbers. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 10% higher than the analyst had forecast, at kr381m, while EPS were kr0.16 beating analyst models by 60%. 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 gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

View our latest analysis for Tobii Dynavox

Taking into account the latest results, the consensus forecast from Tobii Dynavox's sole analyst is for revenues of kr1.51b in 2023. This reflects a credible 8.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 48% to kr0.80. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr1.42b and earnings per share (EPS) of kr0.71 in 2023. So it seems there's been a definite increase in optimism about Tobii Dynavox's future following the latest results, with a decent improvement in the earnings per share forecasts in particular.

With these upgrades, we're not surprised to see that the analyst has lifted their price target 7.6% to kr35.50per share.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Tobii Dynavox's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 35% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.3% per year. So it's pretty clear that, while Tobii Dynavox's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Tobii Dynavox's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them 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.

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 Tobii Dynavox going out as far as 2025, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Tobii Dynavox that you should be aware 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.