Revenue Miss: Meds Apotek AB Fell 5.4% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models
It's been a good week for Meds Apotek AB (STO:MEDS) shareholders, because the company has just released its latest third-quarter results, and the shares gained 3.0% to kr23.70. Revenues came in 5.4% below expectations, at kr234m. Statutory earnings per share were relatively better off, with a per-share profit of kr0.43 being roughly in line with analyst estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the dual analysts covering Meds Apotek are now predicting revenues of kr1.29b in 2027. If met, this would reflect a sizeable 20% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 184% to kr2.42. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr1.31b and earnings per share (EPS) of kr2.01 in 2027. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the considerable lift to earnings per share expectations following these results.
View our latest analysis for Meds Apotek
The consensus price target fell 11% to kr38.25, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns.
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 period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 17% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.9% annually. So although Meds Apotek 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 here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Meds Apotek 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. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for Meds Apotek you should be aware of, and 1 of them is a bit concerning.
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