There's been a notable change in appetite for RaySearch Laboratories AB (publ) (STO:RAY B) shares in the week since its third-quarter report, with the stock down 14% to kr175. It looks like a pretty bad result, all things considered. Although revenues of kr394m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 24% to hit kr1.90 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from RaySearch Laboratories' twin analysts is for revenues of kr1.61b in 2027. This reflects a major 21% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 59% to kr9.70. Before this earnings report, the analysts had been forecasting revenues of kr1.61b and earnings per share (EPS) of kr9.70 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.
Check out our latest analysis for RaySearch Laboratories
It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr298.
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. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 15% annually. So although RaySearch Laboratories is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share 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 least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for RaySearch Laboratories you should know about.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.