Earnings Report: Appear ASA Missed Revenue Estimates By 11%

It's been a good week for Appear ASA (OB:APR) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.5% to kr34.30. Revenues were kr172m, 11% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of kr3.40 being in line with what the analysts forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Appear after the latest results.

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Taking into account the latest results, the consensus forecast from Appear's dual analysts is for revenues of kr979.5m in 2027. This reflects a major 26% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 116% to kr3.04. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr991.0m and earnings per share (EPS) of kr3.46 in 2027. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

See our latest analysis for Appear

The average price target fell 24% to kr60.50, with reduced earnings forecasts clearly tied to a lower valuation estimate.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Appear's past performance and to peers in the same industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 20% growth on an annualised basis. That is in line with its 22% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.0% per year. So although Appear is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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.

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

However, before you get too enthused, we've discovered 2 warning signs for Appear (1 is a bit unpleasant!) that you should be aware of.

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