Analysts Are Updating Their Skandinaviska Enskilda Banken AB (publ) (STO:SEB A) Estimates After Its Yearly Results

It's been a good week for Skandinaviska Enskilda Banken AB (publ) (STO:SEB A) shareholders, because the company has just released its latest full-year results, and the shares gained 10.0% to kr151. Results were roughly in line with estimates, with revenues of kr79b and statutory earnings per share of kr18.06. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Skandinaviska Enskilda Banken

Taking into account the latest results, Skandinaviska Enskilda Banken's 17 analysts currently expect revenues in 2024 to be kr77.8b, approximately in line with the last 12 months. Statutory earnings per share are forecast to sink 13% to kr16.05 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr77.1b and earnings per share (EPS) of kr15.86 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr148. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Skandinaviska Enskilda Banken analyst has a price target of kr183 per share, while the most pessimistic values it at kr115. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 1.8% annualised decline to the end of 2024. That is a notable change from historical growth of 12% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 1.1% per year. So it's pretty clear that Skandinaviska Enskilda Banken's revenues are expected to shrink faster than the wider 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. They also made no changes to their revenue estimates, implying the business is not expected to experience any major impacts to the current trajectory in the near term, even though it is expected to trail the wider industry. The consensus price target held steady at kr148, with the latest estimates not enough to have an impact on their price targets.

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. We have forecasts for Skandinaviska Enskilda Banken going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Skandinaviska Enskilda Banken (1 shouldn't be ignored) you should be aware 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.