Alfa Laval AB (publ) Just Missed Revenue By 6.7%: Here's What Analysts Think Will Happen Next

As you might know, Alfa Laval AB (publ) (STO:ALFA) recently reported its quarterly numbers. Results look mixed - while revenue fell marginally short of analyst estimates at kr16b, statutory earnings were in line with expectations, at kr4.77 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Alfa Laval

Taking into account the latest results, the consensus forecast from Alfa Laval's 17 analysts is for revenues of kr73.1b in 2025. This reflects a meaningful 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 28% to kr21.30. In the lead-up to this report, the analysts had been modelling revenues of kr73.2b and earnings per share (EPS) of kr21.36 in 2025. 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 kr456. 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 kr580 per share, while the most pessimistic values it at kr360. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Alfa Laval's revenue growth is expected to slow, with the forecast 7.9% annualised growth rate until the end of 2025 being well below the historical 10% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.5% per year. Even after the forecast slowdown in growth, it seems obvious that Alfa Laval is also expected to grow faster than the wider 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at kr456, 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.

You still need to take note of risks, for example - Alfa Laval has 1 warning sign we think 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.