Olink Holding AB (publ) (NASDAQ:OLK) Just Reported And Analysts Have Been Cutting Their Estimates
As you might know, Olink Holding AB (publ) (NASDAQ:OLK) last week released its latest yearly, and things did not turn out so great for shareholders. Unfortunately, Olink Holding delivered a serious earnings miss. Revenues of US$170m were 12% below expectations, and statutory losses ballooned 582% to US$0.25 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Olink Holding
After the latest results, the four analysts covering Olink Holding are now predicting revenues of US$206.0m in 2024. If met, this would reflect a substantial 21% improvement in revenue compared to the last 12 months. Per-share statutory losses are expected to explode, reaching US$0.15 per share. Before this earnings report, the analysts had been forecasting revenues of US$249.0m 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 following the latest results, with a real cut to revenues and the analysts now forecasting a loss instead of a profit.
There was no major change to the consensus price target of US$26.00, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.
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. We would highlight that Olink Holding's revenue growth is expected to slow, with the forecast 21% 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. So it's pretty clear that, while Olink Holding's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The biggest low-light for us was that the forecasts for Olink Holding dropped from profits to a loss next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Olink Holding going out to 2026, and you can see them free on our platform here.
We also provide an overview of the Olink Holding Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.
