Skandinaviska Enskilda Banken AB (publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

The quarterly results for Skandinaviska Enskilda Banken AB (publ) (STO:SEB A) were released last week, making it a good time to revisit its performance. Skandinaviska Enskilda Banken reported kr20b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr4.08 beat expectations, being 8.2% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following last week's earnings report, Skandinaviska Enskilda Banken's 14 analysts are forecasting 2025 revenues to be kr77.8b, approximately in line with the last 12 months. Statutory earnings per share are forecast to decrease 5.2% to kr15.74 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr77.2b and earnings per share (EPS) of kr15.32 in 2025. So the consensus seems to have become somewhat more optimistic on Skandinaviska Enskilda Banken's earnings potential following these results.

See our latest analysis for Skandinaviska Enskilda Banken

There's been no major changes to the consensus price target of kr168, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values Skandinaviska Enskilda Banken at kr190 per share, while the most bearish prices it at kr135. 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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.8% by the end of 2025. This indicates a significant reduction from annual growth of 14% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 0.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Skandinaviska Enskilda Banken is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Skandinaviska Enskilda Banken following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at kr168, 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 Skandinaviska Enskilda Banken. 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 Skandinaviska Enskilda Banken going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Skandinaviska Enskilda Banken that 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.