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

Shareholders might have noticed that Alfa Laval Corporate AB (STO:ALFA) filed its annual result this time last week. The early response was not positive, with shares down 2.5% to kr377 in the past week. Revenues of kr64b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr15.31, missing estimates by 5.4%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Alfa Laval

Following the latest results, Alfa Laval's 17 analysts are now forecasting revenues of kr68.4b in 2024. This would be a modest 7.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 20% to kr18.31. Before this earnings report, the analysts had been forecasting revenues of kr67.9b and earnings per share (EPS) of kr18.55 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr379. 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. The most optimistic Alfa Laval analyst has a price target of kr475 per share, while the most pessimistic values it at kr285. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We can infer from the latest estimates that forecasts expect a continuation of Alfa Laval'shistorical trends, as the 7.6% annualised revenue growth to the end of 2024 is roughly in line with the 7.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.7% annually. So it's pretty clear that Alfa Laval is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 estimates - from multiple Alfa Laval analysts - 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.