Shareholders of Formpipe Software AB (publ) (STO:FPIP) will be pleased this week, given that the stock price is up 16% to kr27.40 following its latest third-quarter results. It was a workmanlike result, with revenues of kr61m coming in 4.1% ahead of expectations, and statutory earnings per share of kr0.21, in line with analyst appraisals. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
Taking into account the latest results, the lone analyst covering Formpipe Software provided consensus estimates of kr257.5m revenue in 2026, which would reflect a concerning 53% decline over the past 12 months. Statutory earnings per share are predicted to leap 35% to kr0.50. Before this earnings report, the analyst had been forecasting revenues of kr260.0m and earnings per share (EPS) of kr1.62 in 2026. The analyst seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.
View our latest analysis for Formpipe Software
The consensus price target held steady at kr35.00, with the analyst seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 45% annualised decline to the end of 2026. That is a notable change from historical growth of 5.9% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.3% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining – Formpipe Software is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that Formpipe Software’s revenue is expected to perform worse than the wider 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 said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have analyst estimates for Formpipe Software going out as far as 2027, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for Formpipe Software 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.
