Shareholders might have noticed that CombinedX AB (publ) (STO:CX) filed its quarterly result this time last week. The early response was not positive, with shares down 2.7% to kr25.20 in the past week. Revenues were kr143m, approximately in line with whatthe analyst expected, although statutory earnings per share (EPS) crushed expectations, coming in at kr2.44, an impressive 663% ahead of estimates. This is an important time for investors, as they can track a company’s performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. 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 one analyst covering CombinedX provided consensus estimates of kr591.1m revenue in 2027, which would reflect a stressful 44% decline over the past 12 months. Statutory earnings per share are forecast to plunge 79% to kr1.98 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr703.9m and earnings per share (EPS) of kr2.26 in 2027. Indeed, we can see that the analyst is a lot more bearish about CombinedX’s prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.
Check out our latest analysis for CombinedX
It’ll come as no surprise then, to learn that the analyst has cut their price target 20% to kr39.00.
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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 37% by the end of 2027. This indicates a significant reduction from annual growth of 13% 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. So although its revenues are forecast to shrink, this cloud does not come with a silver lining – CombinedX is expected to lag the wider industry.
The Bottom Line
The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CombinedX. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year’s earnings. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
That said, it’s still necessary to consider the ever-present spectre of investment risk. We’ve identified 5 warning signs with CombinedX (at least 3 which are potentially serious) , and understanding these should be part of your investment process.
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