Absolent Air Care Group AB (publ) (STO:ABSO) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

It's been a pretty great week for Absolent Air Care Group AB (publ) (STO:ABSO) shareholders, with its shares surging 11% to kr238 in the week since its latest first-quarter results. It was a credible result overall, with revenues of kr313m and statutory earnings per share of kr12.71 both in line with analyst estimates, showing that Absolent Air Care Group is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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, Absolent Air Care Group's two analysts are forecasting 2025 revenues to be kr1.34b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 7.6% to kr10.18. Before this earnings report, the analysts had been forecasting revenues of kr1.33b and earnings per share (EPS) of kr12.28 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

Check out our latest analysis for Absolent Air Care Group

The consensus price target held steady at kr342, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.0% by the end of 2025. This indicates a significant reduction from annual growth of 9.2% 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 5.4% per year. It's pretty clear that Absolent Air Care Group's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Absolent Air Care Group. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Absolent Air Care Group's revenue 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. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You can also see whether Absolent Air Care Group is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.