Beijer Ref AB (publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Investors in Beijer Ref AB (publ) (STO:BEIJ B) had a good week, as its shares rose 7.6% to close at kr138 following the release of its yearly results. Revenues were kr32b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of kr4.88 were also better than expected, beating analyst predictions by 19%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Beijer Ref

After the latest results, the five analysts covering Beijer Ref are now predicting revenues of kr34.5b in 2024. If met, this would reflect a reasonable 7.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 2.2% to kr4.58 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr34.6b and earnings per share (EPS) of kr4.65 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr158. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Beijer Ref at kr199 per share, while the most bearish prices it at kr120. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Beijer Ref's revenue growth is expected to slow, with the forecast 7.2% annualised growth rate until the end of 2024 being well below the historical 18% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.5% per year. So it's pretty clear that, while Beijer Ref'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 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. 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 Ref. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Beijer Ref going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Beijer Ref , and understanding this should be part of your investment process.

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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.