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MedCap AB (publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
MedCap AB (publ) (STO:MCAP) just released its latest second-quarter results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 5.6% to hit kr606m. MedCap reported statutory earnings per share (EPS) kr4.60, which was a notable 15% above what the analysts had forecast. 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 MedCap's twin analysts is for revenues of kr2.40b in 2026. This reflects a reasonable 6.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 5.6% to kr16.97. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr2.34b and earnings per share (EPS) of kr17.25 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.
Check out our latest analysis for MedCap
Even though revenue forecasts increased, there was no change to the consensus price target of kr640, suggesting the analysts are focused on earnings as the driver of value creation.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that MedCap's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.3% per year. Even after the forecast slowdown in growth, it seems obvious that MedCap is also expected to grow faster than 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, they also upgraded their revenue estimates, and are forecasting them 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 analyst estimates for MedCap going out as far as 2028, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.