It’s been a mediocre week for InfraCom Group AB (publ) (NGM:INFRA) shareholders, with the stock dropping 16% to kr9.50 in the week since its latest second-quarter results. Statutory earnings per share fell badly short of expectations, coming in at kr0.31, some 23% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at kr198m. Following the result, the analysts have 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. 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, InfraCom Group’s two analysts currently expect revenues in 2026 to be kr816.9m, approximately in line with the last 12 months. Statutory earnings per share are expected to plunge 36% to kr1.21 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr813.6m and earnings per share (EPS) of kr1.37 in 2026. So there’s definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.
Check out our latest analysis for InfraCom Group
The average price target fell 22% to kr19.80, with reduced earnings forecasts clearly tied to a lower valuation estimate.
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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.7% by the end of 2026. This indicates a significant reduction from annual growth of 23% 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 4.5% annually for the foreseeable future. It’s pretty clear that InfraCom Group’s revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of InfraCom Group’s future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
We don’t want to rain on the parade too much, but we did also find 4 warning signs for InfraCom Group (1 can’t be ignored!) that you need to be mindful of.
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