The investors in Meds Apotek AB's (STO:MEDS) will be rubbing their hands together with glee today, after the share price leapt 20% to kr24.80 in the week following its quarterly results. Results overall were respectable, with statutory earnings of kr0.43 per share roughly in line with what the analysts had forecast. Revenues of kr304m came in 3.2% ahead of analyst predictions. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from Meds Apotek's two analysts is for revenues of kr1.13b in 2026. This would reflect a modest 5.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 18% to kr0.95. In the lead-up to this report, the analysts had been modelling revenues of kr1.12b and earnings per share (EPS) of kr1.24 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.
Check out our latest analysis for Meds Apotek
It might be a surprise to learn that the consensus price target fell 6.3% to kr44.50, with the analysts clearly linking lower forecast earnings to the performance of the stock price.
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. We would highlight that Meds Apotek's revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2026 being well below the historical 16% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.8% annually. So it's pretty clear that, while Meds Apotek's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that the 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 the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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 Meds Apotek going out as far as 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for Meds Apotek (1 shouldn't be ignored!) that we have uncovered.
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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.