Skandinaviska Enskilda Banken AB (publ) Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Skandinaviska Enskilda Banken AB (publ) (STO:SEB A) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of kr21b arriving 5.2% ahead of forecasts. Statutory earnings per share (EPS) were kr4.56, 8.5% ahead of estimates. 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 Skandinaviska Enskilda Banken

Taking into account the latest results, the 13 analysts covering Skandinaviska Enskilda Banken provided consensus estimates of kr78.9b revenue in 2024, which would reflect a small 2.7% decline over the past 12 months. Statutory earnings per share are forecast to decline 13% to kr16.23 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr77.8b and earnings per share (EPS) of kr16.12 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 kr152. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Skandinaviska Enskilda Banken at kr192 per share, while the most bearish prices it at kr115. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 3.6% annualised decline to the end of 2024. That is a notable change from historical growth of 13% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 1.4% annually for the foreseeable future. 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. 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 is concerning) 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.