Waystream Holding AB (publ) Just Missed Earnings - But Analysts Have Updated Their Models
Waystream Holding AB (publ) (STO:WAYS) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. Waystream Holding missed earnings this time around, with kr42m revenue coming in 4.8% below what the analysts had modelled. Statutory earnings per share (EPS) of kr0.26 also fell short of expectations by 13%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Waystream Holding after the latest results.
Taking into account the latest results, the consensus forecast from Waystream Holding's two analysts is for revenues of kr209.3m in 2027. This reflects a huge 44% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 1,008% to kr2.26. Before this earnings report, the analysts had been forecasting revenues of kr213.0m and earnings per share (EPS) of kr2.50 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
View our latest analysis for Waystream Holding
The consensus price target held steady at kr58.00, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.
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. It's clear from the latest estimates that Waystream Holding's rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 5.4% 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 1.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Waystream Holding to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Waystream Holding. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Waystream Holding , and understanding it should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.