Nolato AB (publ) Just Missed EPS By 13%: Here's What Analysts Think Will Happen Next

Nolato AB (publ) (STO:NOLA B) shareholders are probably feeling a little disappointed, since its shares fell 3.6% to kr47.35 in the week after its latest quarterly results. It was not a great result overall. While revenues of kr2.5b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 13% to hit kr0.63 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Nolato after the latest results.

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Taking into account the latest results, the most recent consensus for Nolato from four analysts is for revenues of kr9.79b in 2026. If met, it would imply a credible 3.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 5.8% to kr2.81. Before this earnings report, the analysts had been forecasting revenues of kr9.83b and earnings per share (EPS) of kr2.93 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

View our latest analysis for Nolato

The consensus price target held steady at kr63.33, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Nolato, with the most bullish analyst valuing it at kr68.00 and the most bearish at kr60.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Nolato is forecast to grow faster in the future than it has in the past, with revenues expected to display 8.0% annualised growth until the end of 2026. If achieved, this would be a much better result than the 4.5% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.2% annually. So it looks like Nolato is expected to grow faster than its competitors, at least for a while.

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. 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. We have estimates - from multiple Nolato analysts - going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Nolato has 1 warning sign we think you should be aware 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.