Alfa Laval AB (publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

The quarterly results for Alfa Laval AB (publ) (STO:ALFA) were released last week, making it a good time to revisit its performance. It looks like the results were a bit of a negative overall. While revenues of kr18b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 8.4% to hit kr4.08 per share. 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.

Check out our latest analysis for Alfa Laval

Following the latest results, Alfa Laval's 17 analysts are now forecasting revenues of kr69.2b in 2024. This would be a reasonable 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 14% to kr18.49. In the lead-up to this report, the analysts had been modelling revenues of kr69.1b and earnings per share (EPS) of kr18.82 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of kr448, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Alfa Laval analyst has a price target of kr545 per share, while the most pessimistic values it at kr325. 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 can infer from the latest estimates that forecasts expect a continuation of Alfa Laval'shistorical trends, as the 9.7% annualised revenue growth to the end of 2024 is roughly in line with the 9.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.5% annually. So it's pretty clear that Alfa Laval is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr448, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Alfa Laval going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Alfa Laval that we have uncovered.

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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