Results: Rockwool A/S Beat Earnings Expectations And Analysts Now Have New Forecasts

It's been a mediocre week for Rockwool A/S (CPH:ROCK B) shareholders, with the stock dropping 14% to kr.2,574 in the week since its latest third-quarter results. It looks like a credible result overall - although revenues of €957m were in line with what the analysts predicted, Rockwool surprised by delivering a statutory profit of €7.20 per share, a notable 12% above expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Rockwool after the latest results.

See our latest analysis for Rockwool

After the latest results, the eleven analysts covering Rockwool are now predicting revenues of €3.99b in 2025. If met, this would reflect a credible 4.5% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be €24.15, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €4.01b and earnings per share (EPS) of €24.03 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of kr.2,936, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Rockwool, with the most bullish analyst valuing it at kr.3,799 and the most bearish at kr.2,048 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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. It's pretty clear that there is an expectation that Rockwool's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.6% growth on an annualised basis. This is compared to a historical growth rate of 8.9% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.3% per year. Factoring in the forecast slowdown in growth, it seems obvious that Rockwool is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

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 Simply Wall St, we have a full range of analyst estimates for Rockwool going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Rockwool that you need to take into consideration.

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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.