AQ Group AB (publ) (STO:AQ) Just Released Its First-Quarter Earnings: Here's What Analysts Think

It's been a good week for AQ Group AB (publ) (STO:AQ) shareholders, because the company has just released its latest first-quarter results, and the shares gained 9.0% to kr151. It was a credible result overall, with revenues of kr2.3b and statutory earnings per share of kr1.81 both in line with analyst estimates, showing that AQ Group is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on AQ Group after the latest results.

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Taking into account the latest results, the consensus forecast from AQ Group's three analysts is for revenues of kr9.13b in 2025. This reflects a reasonable 5.9% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be kr7.16, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr9.30b and earnings per share (EPS) of kr7.25 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.

Check out our latest analysis for AQ Group

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr175. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic AQ Group analyst has a price target of kr190 per share, while the most pessimistic values it at kr160. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We would highlight that AQ Group's revenue growth is expected to slow, with the forecast 8.0% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.7% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than AQ Group.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 forecasts for AQ Group going out to 2027, and you can see them free on our platform here.

We also provide an overview of the AQ Group Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.