Per Aarsleff Holding A/S (CPH:PAAL B) Just Released Its First-Quarter Earnings: Here's What Analysts Think

Last week, you might have seen that Per Aarsleff Holding A/S (CPH:PAAL B) released its first-quarter result to the market. The early response was not positive, with shares down 8.3% to kr.481 in the past week. It was a credible result overall, with revenues of kr.5.5b and statutory earnings per share of kr.9.33 both in line with analyst estimates, showing that Per Aarsleff Holding is executing in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Per Aarsleff Holding after the latest results.

View our latest analysis for Per Aarsleff Holding

Taking into account the latest results, the most recent consensus for Per Aarsleff Holding from three analysts is for revenues of kr.22.8b in 2025. If met, it would imply a reasonable 3.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 7.8% to kr.47.30. In the lead-up to this report, the analysts had been modelling revenues of kr.22.8b and earnings per share (EPS) of kr.46.03 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of kr.610, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Per Aarsleff Holding, with the most bullish analyst valuing it at kr.675 and the most bearish at kr.550 per share. This is a very narrow spread of estimates, implying either that Per Aarsleff Holding is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Per Aarsleff Holding's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.0% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this to the 180 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.1% per year. Factoring in the forecast slowdown in growth, it looks like Per Aarsleff Holding is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Per Aarsleff Holding's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 in mind, we wouldn't be too quick to come to a conclusion on Per Aarsleff Holding. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Per Aarsleff Holding going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Per Aarsleff Holding's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.