It's been a mediocre week for RVRC Holding AB (publ) (STO:RVRC) shareholders, with the stock dropping 12% to kr54.70 in the week since its latest annual results. RVRC Holding reported in line with analyst predictions, delivering revenues of kr2.0b and statutory earnings per share of kr3.09, suggesting the business is executing well and in line with its plan. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus from RVRC Holding's five analysts is for revenues of kr2.73b in 2027. This would reflect a substantial 35% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 24% to kr3.87. Before this earnings report, the analysts had been forecasting revenues of kr2.78b and earnings per share (EPS) of kr4.08 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
See our latest analysis for RVRC Holding
It might be a surprise to learn that the consensus price target was broadly unchanged at kr80.80, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on RVRC Holding, with the most bullish analyst valuing it at kr85.00 and the most bearish at kr77.00 per share. This is a very narrow spread of estimates, implying either that RVRC Holding is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that RVRC Holding's rate of growth is expected to accelerate meaningfully, with the forecast 35% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 13% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that RVRC Holding is expected to grow much faster than its industry.
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. 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 forecasts for RVRC Holding going out to 2029, and you can see them free on our platform here.
We also provide an overview of the RVRC Holding Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.