Beijer Alma AB (publ) (STO:BEIA B) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in Beijer Alma AB (publ) (STO:BEIA B) had a good week, as its shares rose 5.5% to close at kr210 following the release of its quarterly results. Beijer Alma reported kr1.8b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr2.45 beat expectations, being 2.1% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Beijer Alma

After the latest results, the three analysts covering Beijer Alma are now predicting revenues of kr7.17b in 2024. If met, this would reflect a modest 2.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 23% to kr10.61. Before this earnings report, the analysts had been forecasting revenues of kr7.07b and earnings per share (EPS) of kr10.14 in 2024. So the consensus seems to have become somewhat more optimistic on Beijer Alma's earnings potential following these results.

There's been no major changes to the consensus price target of kr237, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Beijer Alma, with the most bullish analyst valuing it at kr246 and the most bearish at kr229 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. It's pretty clear that there is an expectation that Beijer Alma's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.3% growth on an annualised basis. This is compared to a historical growth rate of 10% 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 4.3% 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 Beijer Alma.

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. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Beijer Alma analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Beijer Alma .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.