Olink Holding AB (publ) (NASDAQ:OLK) Just Reported And Analysts Have Been Cutting Their Estimates

It's shaping up to be a tough period for Olink Holding AB (publ) (NASDAQ:OLK), which a week ago released some disappointing full-year results that could have a notable impact on how the market views the stock. It definitely looks like a negative result overall with revenues falling 12% short of analyst estimates at US$170m. Statutory losses were US$0.25 per share, 582% bigger than what the analysts expected. The analysts 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 analysts have changed their earnings models, following these results.

See our latest analysis for Olink Holding

Taking into account the latest results, the most recent consensus for Olink Holding from four analysts is for revenues of US$206.0m in 2024. If met, it would imply a huge 21% increase on its revenue over the past 12 months. Per-share statutory losses are expected to explode, reaching US$0.15 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$249.0m and earnings per share (EPS) of US$0.05 in 2024. There looks to have been a major change in sentiment regarding Olink Holding's prospects following the latest results, with a real cut to revenues and the analysts now forecasting a loss instead of a profit.

There was no major change to the consensus price target of US$26.00, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.

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 pretty clear that there is an expectation that Olink Holding's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 21% growth on an annualised basis. This is compared to a historical growth rate of 35% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.0% annually. So it's pretty clear that, while Olink Holding's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest low-light for us was that the forecasts for Olink Holding dropped from profits to a loss next year. They also downgraded Olink Holding's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at US$26.00, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Olink Holding. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Olink Holding analysts - going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.