Carasent AB (publ) Just Missed Revenue By 7.0%: Here's What Analysts Think Will Happen Next
Investors in Carasent AB (publ) (STO:CARA) had a good week, as its shares rose 6.6% to close at kr28.35 following the release of its third-quarter results. Revenues came in 7.0% below expectations, at kr107m. Statutory earnings per share were relatively better off, with a per-share profit of kr0.15 being roughly in line with analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from Carasent's dual analysts is for revenues of kr509.9m in 2027. This reflects a substantial 31% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 56% to kr0.92. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr529.5m and earnings per share (EPS) of kr0.86 in 2027. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.
View our latest analysis for Carasent
There's been no real change to the average price target of kr34.93, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe.
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. The analysts are definitely expecting Carasent's growth to accelerate, with the forecast 24% annualised growth to the end of 2027 ranking favourably alongside historical growth of 19% per annum 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 15% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Carasent to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Carasent following these results. They also downgraded Carasent's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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 Carasent. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Carasent going out as far as 2028, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.