Earnings Beat: Beijer Alma AB (publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Beijer Alma AB (publ) (STO:BEIA B) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 4.2% to hit kr1.9b. Beijer Alma reported statutory earnings per share (EPS) kr2.91, which was a notable 13% above what the analysts had forecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, Beijer Alma's three analysts are now forecasting revenues of kr8.19b in 2026. This would be a reasonable 6.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 52% to kr13.52. In the lead-up to this report, the analysts had been modelling revenues of kr8.12b and earnings per share (EPS) of kr13.04 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for Beijer Alma

The consensus price target rose 5.0% to kr313, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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 Beijer Alma analyst has a price target of kr315 per share, while the most pessimistic values it at kr310. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Beijer Alma is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. 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 2026 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this to the 37 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.9% per year. So it's pretty clear that, while Beijer Alma's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Beijer Alma's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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.

Before you take the next step you should know about the 2 warning signs for Beijer Alma that we have uncovered.

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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.