Here's What Analysts Are Forecasting For Mentice AB (publ) (STO:MNTC) After Its Third-Quarter Results

As you might know, Mentice AB (publ) (STO:MNTC) last week released its latest quarterly, and things did not turn out so great for shareholders. It was a pretty negative result overall, with revenues of kr73m missing analyst predictions by 4.9%. Worse, the business reported a statutory loss of kr0.51 per share, much larger than the analysts had forecast prior to the result. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, Mentice's twin analysts are now forecasting revenues of kr353.7m in 2027. This would be a decent 12% improvement in revenue compared to the last 12 months. Mentice is also expected to turn profitable, with statutory earnings of kr0.39 per share. In the lead-up to this report, the analysts had been modelling revenues of kr352.6m and earnings per share (EPS) of kr0.71 in 2027. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

View our latest analysis for Mentice

The consensus price target held steady at kr22.75, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Mentice'shistorical trends, as the 9.8% annualised revenue growth to the end of 2027 is roughly in line with the 9.5% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 15% annually. So it's pretty clear that Mentice is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Mentice's revenue is expected to perform worse 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Mentice. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

Even so, be aware that Mentice is showing 2 warning signs in our investment analysis , you should know about...

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