These Analysts Think Olink Holding AB (publ)'s (NASDAQ:OLK) Sales Are Under Threat
The analysts covering Olink Holding AB (publ) (NASDAQ:OLK) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
Following the downgrade, the most recent consensus for Olink Holding from its four analysts is for revenues of US$201m in 2024 which, if met, would be a decent 19% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 51% to US$0.12 per share. Previously, the analysts had been modelling revenues of US$249m and earnings per share (EPS) of US$0.05 in 2024. There looks to have been a major change in sentiment regarding Olink Holding's prospects, with a measurable cut to revenues and the analysts now forecasting a loss instead of a profit.
Check out our latest analysis for Olink Holding
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Olink Holding's revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2024 being well below the historical 35% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.0% annually. Even after the forecast slowdown in growth, it seems obvious that Olink Holding is also expected to grow faster than the wider industry.
The Bottom Line
The biggest low-light for us was that the forecasts for Olink Holding dropped from profits to a loss this year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Olink Holding after today.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Olink Holding going out to 2026, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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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.
