Addnode Group AB (publ) Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Shareholders of Addnode Group AB (publ) (STO:ANOD B) will be pleased this week, given that the stock price is up 14% to kr64.60 following its latest quarterly results. Revenues were kr1.4b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at kr0.80, an impressive 66% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Addnode Group after the latest results.

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Following the latest results, Addnode Group's five analysts are now forecasting revenues of kr6.33b in 2027. This would be a reasonable 5.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 20% to kr3.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr6.30b and earnings per share (EPS) of kr3.18 in 2027. So the consensus seems to have become somewhat more optimistic on Addnode Group's earnings potential following these results.

See our latest analysis for Addnode Group

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 9.9% to kr84.60. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Addnode Group at kr102 per share, while the most bearish prices it at kr75.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 can infer from the latest estimates that forecasts expect a continuation of Addnode Group'shistorical trends, as the 4.7% annualised revenue growth to the end of 2027 is roughly in line with the 5.2% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 4.6% per year. So although Addnode Group is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Addnode Group following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Addnode Group going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Addnode Group that you should be aware of.

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