Earnings Miss: InfraCom Group AB (publ) Missed EPS By 23% And Analysts Are Revising Their Forecasts
It's been a mediocre week for InfraCom Group AB (publ) (NGM:INFRA) shareholders, with the stock dropping 17% to kr14.05 in the week since its latest quarterly results. It looks like a pretty bad result, all things considered. Although revenues of kr198m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 23% to hit kr0.31 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following last week's earnings report, InfraCom Group's two analysts are forecasting 2026 revenues to be kr810.1m, approximately in line with the last 12 months. Statutory earnings per share are forecast to nosedive 62% to kr1.37 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr828.8m and earnings per share (EPS) of kr1.58 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.
Check out our latest analysis for InfraCom Group
The consensus price target fell 22% to kr19.80, with the weaker earnings outlook clearly leading valuation estimates.
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. We would highlight that revenue is expected to reverse, with a forecast 1.1% annualised decline to the end of 2026. That is a notable change from historical growth of 25% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.0% per year. It's pretty clear that InfraCom Group's revenues are expected to perform substantially worse 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 InfraCom Group. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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.
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. We have analyst estimates for InfraCom Group going out as far as 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for InfraCom Group (1 is a bit concerning!) that we have uncovered.
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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.