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

As you might know, Skandinaviska Enskilda Banken AB (publ) (STO:SEB A) just kicked off its latest second-quarter results with some very strong numbers. The company beat expectations with revenues of kr20b arriving 2.6% ahead of forecasts. Statutory earnings per share (EPS) were kr4.54, 5.7% 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Skandinaviska Enskilda Banken

After the latest results, the consensus from Skandinaviska Enskilda Banken's 14 analysts is for revenues of kr79.6b in 2024, which would reflect a small 2.2% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to reduce 6.1% to kr17.35 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr78.7b and earnings per share (EPS) of kr16.57 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at kr156, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Skandinaviska Enskilda Banken at kr183 per share, while the most bearish prices it at kr124. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 4.3% annualised decline to the end of 2024. That is a notable change from historical growth of 14% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 1.2% 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Skandinaviska Enskilda Banken's earnings potential next year. The consensus also reconfirmed their revenue estimates, suggesting that it is performing in line with expectations. Plus, our data suggests that Skandinaviska Enskilda Banken is expected to 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Skandinaviska Enskilda Banken going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Skandinaviska Enskilda Banken (1 doesn't sit too well with us!) 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com