Earnings Miss: Genovis AB (publ.) Missed EPS By 78% And Analysts Are Revising Their Forecasts
Genovis AB (publ.) (STO:GENO) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at kr34m, statutory earnings missed forecasts by an incredible 78%, coming in at just kr0.02 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus from Genovis AB (publ.)'s three analysts is for revenues of kr146.7m in 2026. This would reflect a modest 7.1% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 3.7% to kr0.32. Before this earnings report, the analysts had been forecasting revenues of kr149.6m and earnings per share (EPS) of kr0.39 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.
View our latest analysis for Genovis AB (publ.)
The consensus price target held steady at kr32.00, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic Genovis AB (publ.) analyst has a price target of kr38.00 per share, while the most pessimistic values it at kr28.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Genovis AB (publ.)'s past performance and to peers in the same industry. It's clear from the latest estimates that Genovis AB (publ.)'s rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 7.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Genovis AB (publ.) 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 Genovis AB (publ.). 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Genovis AB (publ.) analysts - going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Genovis AB (publ.) that you need to take into consideration.
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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.