The AcadeMedia AB (publ) (STO:ACAD) Full-Year Results Are Out And Analysts Have Published New Forecasts
Investors in AcadeMedia AB (publ) (STO:ACAD) had a good week, as its shares rose 5.0% to close at kr101 following the release of its full-year results. AcadeMedia reported kr20b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr9.97 beat expectations, being 2.2% higher than what the analysts expected. 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 twin analysts covering AcadeMedia are now predicting revenues of kr22.6b in 2027. If met, this would reflect a decent 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 18% to kr11.75. Before this earnings report, the analysts had been forecasting revenues of kr22.4b and earnings per share (EPS) of kr11.41 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
View our latest analysis for AcadeMedia
There's been no major changes to the consensus price target of kr128, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.
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. The analysts are definitely expecting AcadeMedia's growth to accelerate, with the forecast 11% annualised growth to the end of 2027 ranking favourably alongside historical growth of 8.8% 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 4.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that AcadeMedia is expected to grow much faster than its 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 AcadeMedia following these results. 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. The consensus price target held steady at kr128, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on AcadeMedia. Long-term earnings power is much more important than next year's profits. We have analyst estimates for AcadeMedia going out as far as 2029, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for AcadeMedia 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.