Analysts Have Just Cut Their NCC AB (publ) (STO:NCC B) Revenue Estimates By 17%

The latest analyst coverage could presage a bad day for NCC AB (publ) (STO:NCC B), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

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After the downgrade, the consensus from NCC's twin analysts is for revenues of kr47b in 2026, which would reflect an uncomfortable 13% decline in sales compared to the last year of performance. Statutory earnings per share are presumed to jump 1,634% to kr13.83. Prior to this update, the analysts had been forecasting revenues of kr57b and earnings per share (EPS) of kr14.32 in 2026. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a measurable cut to revenue estimates and a small dip in EPS estimates to boot.

See our latest analysis for NCC

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. We would highlight that sales are expected to reverse, with a forecast 24% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 2.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - NCC is expected to lag the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for NCC. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that NCC's revenues are expected to grow slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on NCC after today.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with NCC's financials, such as its declining profit margins. Learn more, and discover the 3 other flags we've identified, for free on our platform here.

You can also see our analysis of NCC's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.