Nyab AB (publ) Just Missed Earnings - But Analysts Have Updated Their Models
Nyab AB (publ) (STO:NYAB) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was not a great result overall. Although revenues beat expectations, hitting €190m, statutory earnings missed analyst forecasts by 12%, coming in at just €0.017 per share. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for Nyab from two analysts is for revenues of €704.0m in 2027. If met, it would imply a notable 16% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 40% to €0.06. Before this earnings report, the analysts had been forecasting revenues of €675.9m and earnings per share (EPS) of €0.056 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
View our latest analysis for Nyab
With these upgrades, we're not surprised to see that the analysts have lifted their price target 13% to kr9.48per share.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Nyab's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 34% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.5% annually. Even after the forecast slowdown in growth, it seems obvious that Nyab is also expected to grow faster than the wider 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 Nyab following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Nyab. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Nyab going out as far as 2028, and you can see them free on our platform here.
We also provide an overview of the Nyab Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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