Analyst Estimates: Here's What Brokers Think Of Alfa Laval AB (publ) (STO:ALFA) After Its Annual Report

Alfa Laval AB (publ) (STO:ALFA) shareholders are probably feeling a little disappointed, since its shares fell 6.8% to kr462 in the week after its latest yearly results. Revenues of kr67b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr17.88, missing estimates by 3.4%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Alfa Laval after the latest results.

See our latest analysis for Alfa Laval

Following the latest results, Alfa Laval's 17 analysts are now forecasting revenues of kr73.3b in 2025. This would be a meaningful 9.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 22% to kr21.75. In the lead-up to this report, the analysts had been modelling revenues of kr73.4b and earnings per share (EPS) of kr21.74 in 2025. 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.

There were no changes to revenue or earnings estimates or the price target of kr483, suggesting that the company has met expectations in its recent result. 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 kr590 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 can infer from the latest estimates that forecasts expect a continuation of Alfa Laval'shistorical trends, as the 9.5% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.7% per year. 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.

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 2027, 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.