Swedencare AB (publ) Just Missed Earnings And Its EPS Looked Sad - But Analysts Have Updated Their Models

Simply Wall St

As you might know, Swedencare AB (publ) (STO:SECARE) last week released its latest full-year, and things did not turn out so great for shareholders. Results look to have been somewhat negative - revenue fell 2.1% short of analyst estimates at kr127m, and statutory earnings of kr1.90 per share missed forecasts by 8.7%. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.

View our latest analysis for Swedencare

OM:SECARE Past and Future Earnings, February 18th 2020

Following the latest results, Swedencare's lone analyst are now forecasting revenues of kr173.0m in 2020. This would be a major 36% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to bounce 25% to kr2.37. In the lead-up to this report, analysts had been modelling revenues of kr171.8m and earnings per share (EPS) of kr2.59 in 2020. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but analysts did make a small dip in their earnings per share forecasts.

Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. We can infer from the latest estimates that analysts are expecting a continuation of Swedencare's historical trends, as next year's forecast 36% revenue growth is roughly in line with 30% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 19% per year. So it's pretty clear that Swedencare is forecast to grow substantially faster than its market.

The Bottom Line

The most important thing to take away is that analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. There is currently no consensus price target from the analysts we track, but we note that the market disliked the latest results, with the share price falling -13% in the past week.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Swedencare going out as far as 2022, and you can see them free on our platform here.

We also provide an overview of the Swedencare Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.