Earnings Release: Here's Why Analysts Cut Their Solar A/S (CPH:SOLAR B) Price Target To kr.240

Shareholders might have noticed that Solar A/S (CPH:SOLAR B) filed its quarterly result this time last week. The early response was not positive, with shares down 3.2% to kr.199 in the past week. It was a workmanlike result, with revenues of kr.2.8b coming in 3.0% ahead of expectations, and statutory earnings per share of kr.20.60, in line with analyst appraisals. This is an important time for investors, as they can track a company's performance in its report, look at what experts are 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 estimates suggest is in store for next year.

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Following the latest results, Solar's two analysts are now forecasting revenues of kr.12.7b in 2026. This would be a satisfactory 3.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 351% to kr.16.06. Before this earnings report, the analysts had been forecasting revenues of kr.12.7b and earnings per share (EPS) of kr.16.20 in 2026. 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.

See our latest analysis for Solar

With no major changes to earnings forecasts, the consensus price target fell 24% to kr.240, suggesting that the analysts might have previously been hoping for an earnings upgrade.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Solar's rate of growth is expected to accelerate meaningfully, with the forecast 2.8% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.0% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.6% per year. So it's clear that despite the acceleration in growth, Solar is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Solar's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Solar's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Solar. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Solar going out as far as 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 4 warning signs for Solar (2 are a bit concerning!) that you need to be mindful of.

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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.