Results: Bactiguard Holding AB (publ) Exceeded Expectations And The Consensus Has Updated Its Estimates
Shareholders might have noticed that Bactiguard Holding AB (publ) (STO:BACTI B) filed its third-quarter result this time last week. The early response was not positive, with shares down 3.7% to kr15.50 in the past week. It was overall a positive result, with revenues beating expectations by 6.2% to hit kr58m. Bactiguard Holding also reported a statutory profit of kr0.25, which was a nice improvement from the loss that the analyst were predicting. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Bactiguard Holding's solitary analyst is for revenues of kr250.0m in 2027. This reflects a solid 9.9% improvement in revenue compared to the last 12 months. The company is forecast to report a statutory loss of kr0.26 in 2027, a sharp decline from a profit over the last year. Yet prior to the latest earnings, the analyst had been forecasting revenues of kr245.0m and losses of kr0.30 per share in 2027. So it seems there's been a definite increase in optimism about Bactiguard Holding's future following the latest consensus numbers, with a favorable reduction in the loss per share forecasts in particular.
View our latest analysis for Bactiguard Holding
The consensus price target rose 7.0% to kr23.00, with the analyst encouraged by the higher revenue and lower forecast losses for next year.
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 analyst is definitely expecting Bactiguard Holding's growth to accelerate, with the forecast 7.9% annualised growth to the end of 2027 ranking favourably alongside historical growth of 2.4% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 9.4% per year. Bactiguard Holding is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Bactiguard Holding will grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Bactiguard Holding. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
However, before you get too enthused, we've discovered 3 warning signs for Bactiguard Holding (1 is potentially serious!) that you should be aware of.
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