ASSA ABLOY AB (publ) (STO:ASSA B) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

It's been a good week for ASSA ABLOY AB (publ) (STO:ASSA B) shareholders, because the company has just released its latest second-quarter results, and the shares gained 6.1% to kr320. Results were roughly in line with estimates, with revenues of kr38b and statutory earnings per share of kr3.43. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following last week's earnings report, ASSA ABLOY's 16 analysts are forecasting 2025 revenues to be kr154.3b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 3.1% to kr13.49. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr152.9b and earnings per share (EPS) of kr13.26 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.

Check out our latest analysis for ASSA ABLOY

The analysts reconfirmed their price target of kr347, showing that the business is executing well and in line with expectations. 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 ASSA ABLOY analyst has a price target of kr410 per share, while the most pessimistic values it at kr277. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ASSA ABLOY's past performance and to peers in the same industry. It's pretty clear that there is an expectation that ASSA ABLOY's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.8% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.3% per year. Factoring in the forecast slowdown in growth, it seems obvious that ASSA ABLOY is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ASSA ABLOY's revenue is expected to 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple ASSA ABLOY analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for ASSA ABLOY 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.