Earnings Update: eEducation Albert AB (publ) (STO:ALBERT) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

eEducation Albert AB (publ) (STO:ALBERT) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The results were positive, with revenue coming in at kr37m, beating analyst expectations by 6.7%. 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Taking into account the latest results, the current consensus from eEducation Albert's single analyst is for revenues of kr154.8m in 2027. This would reflect a huge 23% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 77% to kr0.38. Before this latest report, the consensus had been expecting revenues of kr152.6m and kr0.43 per share in losses. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analyst upgrading their numbers and making a notable improvement in losses per share in particular.

Check out our latest analysis for eEducation Albert

The average price target held steady at kr6.50, seeming to indicate that business is performing in line with expectations.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the eEducation Albert's past performance and to peers in the same industry. It's clear from the latest estimates that eEducation Albert's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 14% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that eEducation Albert is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected 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. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

Before you take the next step you should know about the 1 warning sign for eEducation Albert that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.