Earnings Update: Orrön Energy AB (publ) (STO:ORRON) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

A week ago, Orrön Energy AB (publ) (STO:ORRON) came out with a strong set of full-year numbers that could potentially lead to a re-rate of the stock. Results overall were solid, with revenues arriving 7.8% better than analyst forecasts at €28m. Higher revenues also resulted in substantially lower statutory losses which, at €0.029 per share, were 7.8% smaller than the analyst expected. 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

Check out our latest analysis for Orrön Energy

Following the latest results, Orrön Energy's sole analyst are now forecasting revenues of €46.8m in 2024. This would be a major 65% improvement in revenue compared to the last 12 months. Losses are expected to increase slightly, to €0.031 per share. Yet prior to the latest earnings, the analyst had been forecasting revenues of €47.6m and losses of €0.016 per share in 2024. While this year's revenue estimates held steady, there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

As a result, there was no major change to the consensus price target of kr11.26, with the analyst implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Orrön Energy is forecast to grow faster in the future than it has in the past, with revenues expected to display 65% annualised growth until the end of 2024. If achieved, this would be a much better result than the 60% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 8.5% annually. So it looks like Orrön Energy is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for 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. The consensus price target held steady at kr11.26, with the latest estimates not enough to have an impact on their price target.

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 Orrön Energy going out as far as 2026, and you can see them free on our platform here.

You can also view our analysis of Orrön Energy's balance sheet, and whether we think Orrön Energy is carrying too much debt, for free on our platform here.

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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.