SEB SA (EPA:SK) Just Reported Half-Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

SEB SA (EPA:SK) shareholders are probably feeling a little disappointed, since its shares fell 6.9% to €94.45 in the week after its latest interim results. SEB reported in line with analyst predictions, delivering revenues of €3.7b and statutory earnings per share of €6.97, suggesting the business is executing well and in line with its plan. 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.

See our latest analysis for SEB

Taking into account the latest results, the current consensus from SEB's nine analysts is for revenues of €8.30b in 2024. This would reflect a reasonable 2.0% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 11% to €8.23. In the lead-up to this report, the analysts had been modelling revenues of €8.36b and earnings per share (EPS) of €8.54 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at €135, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic SEB analyst has a price target of €149 per share, while the most pessimistic values it at €125. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. The analysts are definitely expecting SEB's growth to accelerate, with the forecast 4.1% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 5.0% annually. So it's clear that despite the acceleration in growth, SEB is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SEB. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on SEB. 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 SEB going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with SEB .

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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.

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