Earnings Update: ALK-Abelló A/S (CPH:ALK B) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts

Last week saw the newest full-year earnings release from ALK-Abelló A/S (CPH:ALK B), an important milestone in the company's journey to build a stronger business. It looks like the results were a bit of a negative overall. While revenues of kr.5.5b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.9% to hit kr.3.70 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for ALK-Abelló

Taking into account the latest results, the most recent consensus for ALK-Abelló from four analysts is for revenues of kr.6.21b in 2025. If met, it would imply a meaningful 12% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 48% to kr.5.46. In the lead-up to this report, the analysts had been modelling revenues of kr.6.21b and earnings per share (EPS) of kr.5.40 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr.181. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic ALK-Abelló analyst has a price target of kr.190 per share, while the most pessimistic values it at kr.173. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ALK-Abelló's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of ALK-Abelló'shistorical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.4% per year. So it's pretty clear that ALK-Abelló is forecast to grow substantially faster than its industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr.181, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on ALK-Abelló. 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 ALK-Abelló going out to 2027, and you can see them free on our platform here..

It might also be worth considering whether ALK-Abelló's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, 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.