Results: Sectra AB (publ) Beat Earnings Expectations And Analysts Now Have New Forecasts
Last week, you might have seen that Sectra AB (publ) (STO:SECT B) released its second-quarter result to the market. The early response was not positive, with shares down 8.1% to kr254 in the past week. Revenues were kr851m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at kr0.77, an impressive 45% ahead of estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following last week's earnings report, Sectra's dual analysts are forecasting 2026 revenues to be kr3.51b, approximately in line with the last 12 months. Statutory earnings per share are expected to drop 16% to kr2.83 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr3.53b and earnings per share (EPS) of kr2.76 in 2026. So the consensus seems to have become somewhat more optimistic on Sectra's earnings potential following these results.
See our latest analysis for Sectra
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 18% to kr245.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Sectra's revenue growth is expected to slow, with the forecast 2.2% annualised growth rate until the end of 2026 being well below the historical 16% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Sectra.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sectra's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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.
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.
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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.