Beijer Alma AB (publ) Just Missed EPS By 13%: Here's What Analysts Think Will Happen Next

It's been a pretty great week for Beijer Alma AB (publ) (STO:BEIA B) shareholders, with its shares surging 13% to kr199 in the week since its latest first-quarter results. Statutory earnings per share of kr2.60 unfortunately missed expectations by 13%, although it was encouraging to see revenues of kr2.0b exceed expectations by 3.0%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the three analysts covering Beijer Alma are now predicting revenues of kr7.67b in 2025. If met, this would reflect a credible 4.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 7.7% to kr11.08 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr7.63b and earnings per share (EPS) of kr10.71 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for Beijer Alma

The consensus price target was unchanged at kr208, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on Beijer Alma, with the most bullish analyst valuing it at kr227 and the most bearish at kr188 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Beijer Alma's revenue growth is expected to slow, with the forecast 5.8% annualised growth rate until the end of 2025 being well below the historical 13% 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 4.0% annually. So it's pretty clear that, while Beijer Alma's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Beijer Alma following these results. 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 in mind, we wouldn't be too quick to come to a conclusion on Beijer Alma. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Beijer Alma analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Beijer Alma has 2 warning signs 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.