Invisio AB (publ) Just Missed EPS By 22%: Here's What Analysts Think Will Happen Next

It's been a mediocre week for Invisio AB (publ) (STO:IVSO) shareholders, with the stock dropping 11% to kr218 in the week since its latest third-quarter results. Statutory earnings per share fell badly short of expectations, coming in at kr0.66, some 22% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at kr408m. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Invisio's six analysts is for revenues of kr2.54b in 2027. This reflects a major 25% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 60% to kr9.83. In the lead-up to this report, the analysts had been modelling revenues of kr2.55b and earnings per share (EPS) of kr10.16 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for Invisio

The average price target fell 6.3% to kr298, with reduced earnings forecasts clearly tied to a lower valuation estimate. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Invisio analyst has a price target of kr338 per share, while the most pessimistic values it at kr240. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Invisio's revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2027 being well below the historical 25% p.a. growth over the last five years. Compare this to the 12 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 16% per year. So it's pretty clear that, while Invisio's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Invisio. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 Simply Wall St, we have a full range of analyst estimates for Invisio going out to 2028, and you can see them free on our platform here..

We also provide an overview of the Invisio Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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