It's been a good week for Lime Technologies AB (publ) (STO:LIME) shareholders, because the company has just released its latest third-quarter results, and the shares gained 3.4% to kr271. It looks like the results were a bit of a negative overall. While revenues of kr194m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 9.5% to hit kr2.14 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from Lime Technologies' four analysts is for revenues of kr901.8m in 2027. This reflects a decent 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 27% to kr11.64. In the lead-up to this report, the analysts had been modelling revenues of kr898.8m and earnings per share (EPS) of kr11.63 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Lime Technologies
There were no changes to revenue or earnings estimates or the price target of kr313, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Lime Technologies, with the most bullish analyst valuing it at kr339 and the most bearish at kr295 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lime Technologies' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Lime Technologies' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Compare this to the 64 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 8.6% per year. Factoring in the forecast slowdown in growth, it looks like Lime Technologies is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Lime Technologies going out to 2028, and you can see them free on our platform here..
You can also see whether Lime Technologies is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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