Earnings Update: Transtema Group AB (STO:TRANS) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

Last week, you might have seen that Transtema Group AB (STO:TRANS) released its quarterly result to the market. The early response was not positive, with shares down 6.4% to kr4.85 in the past week. The results don't look great, especially considering that statutory losses grew 370% tokr0.47 per share. Revenues of kr636m did beat expectations by 7.7%, but it looks like a bit of a cold comfort. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

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Taking into account the latest results, the current consensus, from the sole analyst covering Transtema Group, is for revenues of kr2.28b in 2026. This implies an uncomfortable 9.6% reduction in Transtema Group's revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 83% to kr0.74. Before this earnings announcement, the analyst had been modelling revenues of kr2.23b and losses of kr0.42 per share in 2026. While this year's revenue estimates increased, there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

View our latest analysis for Transtema Group

There was no major change to the consensus price target of kr8.20, with growing revenues seemingly enough to offset the concern of growing losses.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 18% annualised decline to the end of 2026. That is a notable change from historical growth of 8.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.2% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Transtema Group is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Transtema Group. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

It is also worth noting that we have found 3 warning signs for Transtema Group (1 shouldn't be ignored!) that you need to take into consideration.

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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.