Paradox Interactive AB (publ) Just Recorded A 91% EPS Beat: Here's What Analysts Are Forecasting Next
Paradox Interactive AB (publ) (STO:PDX) just released its latest quarterly results and things are looking bullish. The company beat forecasts, with revenue of kr456m, some 4.8% above estimates, and statutory earnings per share (EPS) coming in at kr1.21, 91% ahead of expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from Paradox Interactive's five analysts is for revenues of kr2.53b in 2027. This would reflect a meaningful 11% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 346% to kr6.85. Before this earnings report, the analysts had been forecasting revenues of kr2.52b and earnings per share (EPS) of kr6.84 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for Paradox Interactive
It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr157. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Paradox Interactive at kr170 per share, while the most bearish prices it at kr137. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Paradox Interactive's growth to accelerate, with the forecast 8.4% annualised growth to the end of 2027 ranking favourably alongside historical growth of 6.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.1% annually. Paradox Interactive 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 important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Paradox Interactive. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Paradox Interactive going out to 2028, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 3 warning signs for Paradox Interactive (of which 1 is a bit concerning!) you should know about.
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