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Results: Yubico AB Beat Earnings Expectations And Analysts Now Have New Forecasts
Yubico AB (STO:YUBICO) just released its third-quarter report and things are looking bullish. Statutory revenue of kr708m and earnings of kr1.69 both blasted past expectations, beating expectations by 26% and 110%, respectively, ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the five analysts covering Yubico are now predicting revenues of kr2.68b in 2027. If met, this would reflect a solid 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 41% to kr3.87. Before this earnings report, the analysts had been forecasting revenues of kr2.53b and earnings per share (EPS) of kr3.62 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
View our latest analysis for Yubico
It will come as no surprise to learn that the analysts have increased their price target for Yubico 18% to kr124on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Yubico, with the most bullish analyst valuing it at kr165 and the most bearish at kr60.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Yubico's growth to accelerate, with the forecast 14% annualised growth to the end of 2027 ranking favourably alongside historical growth of 6.0% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Yubico is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Yubico's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Yubico. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Yubico analysts - going out to 2028, and you can see them free on our platform here.
Even so, be aware that Yubico is showing 1 warning sign in our investment analysis , you should know about...
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