Ovzon AB (publ) Just Missed Revenue By 15%: Here's What Analysts Think Will Happen Next

It's been a mediocre week for Ovzon AB (publ) (STO:OVZON) shareholders, with the stock dropping 11% to kr35.70 in the week since its latest second-quarter results. Revenues were kr166m, 15% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of kr0.20 being in line with what the analysts anticipated. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, Ovzon's two analysts are now forecasting revenues of kr719.0m in 2025. This would be a major 55% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Ovzon forecast to report a statutory profit of kr0.81 per share. Before this earnings report, the analysts had been forecasting revenues of kr780.5m and earnings per share (EPS) of kr0.84 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

See our latest analysis for Ovzon

The average price target climbed 98% to kr44.50despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

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. It's clear from the latest estimates that Ovzon's rate of growth is expected to accelerate meaningfully, with the forecast 140% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 16% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 0.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Ovzon is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Ovzon. They also downgraded Ovzon's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts 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. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Even so, be aware that Ovzon is showing 1 warning sign in our investment analysis , you should know about...

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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.