Analysts Are Updating Their Addtech AB (publ.) (STO:ADDT B) Estimates After Its First-Quarter Results

It's been a good week for Addtech AB (publ.) (STO:ADDT B) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.3% to kr342. The result was positive overall - although revenues of kr5.8b were in line with what the analysts predicted, Addtech AB (publ.) surprised by delivering a statutory profit of kr2.00 per share, modestly greater than expected. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Addtech AB (publ.) from five analysts is for revenues of kr23.1b in 2026. If met, it would imply a credible 4.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 9.8% to kr7.96. Before this earnings report, the analysts had been forecasting revenues of kr23.0b and earnings per share (EPS) of kr7.65 in 2026. So the consensus seems to have become somewhat more optimistic on Addtech AB (publ.)'s earnings potential following these results.

See our latest analysis for Addtech AB (publ.)

There's been no major changes to the consensus price target of kr372, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. There are some variant perceptions on Addtech AB (publ.), with the most bullish analyst valuing it at kr430 and the most bearish at kr320 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Addtech AB (publ.)'s revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.7% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Compare this to the 12 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.9% per year. Factoring in the forecast slowdown in growth, it looks like Addtech AB (publ.) is forecast to grow at about the same rate as 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 Addtech AB (publ.) following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 estimates - from multiple Addtech AB (publ.) analysts - going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Addtech AB (publ.) that you need to take into consideration.

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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.