C-Rad AB (publ) Just Missed Revenue By 17%: Here's What Analysts Think Will Happen Next

Shareholders in C-Rad AB (publ) (STO:CRAD B) had a terrible week, as shares crashed 26% to kr21.00 in the week since its latest quarterly results. It looks to have been a bit of a mixed result. While revenues of kr85m fell 17% short of what the analyst had predicted, statutory earnings per share (EPS) of kr0.31 exceeded expectations by 3.9%. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

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Taking into account the latest results, the most recent consensus for C-Rad from solitary analyst is for revenues of kr454.6m in 2027. If met, it would imply a solid 8.8% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 39% to kr1.96. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr491.3m and earnings per share (EPS) of kr2.23 in 2027. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

View our latest analysis for C-Rad

It'll come as no surprise then, to learn that the analyst has cut their price target 22% to kr35.00.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that C-Rad's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 7.0% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.4% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than C-Rad.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of C-Rad's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for C-Rad going out as far as 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for C-Rad (1 is a bit concerning!) that you should be aware of.

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