Sedana Medical AB (publ) (STO:SEDANA) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The business exceeded expectations with revenue of kr49m coming in 3.9% ahead of forecasts. Statutory losses were kr0.10 a share, in line with what the analyst predicted. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Sedana Medical's sole analyst is for revenues of kr211.0m in 2026. This would reflect a reasonable 7.9% increase on its revenue over the past 12 months. Losses are expected to be contained, narrowing 20% from last year to kr0.29. Before this earnings announcement, the analyst had been modelling revenues of kr209.0m and losses of kr0.28 per share in 2026. Overall it looks as though the analyst were a bit mixed on the latest consensus updates. Although revenue forecasts held steady, the consensus also made a pronounced increase to its losses per share forecasts.
Check out our latest analysis for Sedana Medical
With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 5.3% to kr18.00, with the analyst signalling that growing losses would be a definite concern.
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. The analyst is definitely expecting Sedana Medical's growth to accelerate, with the forecast 17% annualised growth to the end of 2026 ranking favourably alongside historical growth of 8.0% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 17% per year. Sedana Medical is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Sedana Medical. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Sedana Medical's future valuation.
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 Sedana Medical going out as far as 2028, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 2 warning signs for Sedana Medical (1 is significant!) that you need to be mindful of.
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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.