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

It's been a good week for Beijer Ref AB (publ) (STO:BEIJ B) shareholders, because the company has just released its latest first-quarter results, and the shares gained 6.8% to kr146. Beijer Ref reported kr8.9b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr0.94 beat expectations, being 5.0% higher than what the analysts expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Our free stock report includes 1 warning sign investors should be aware of before investing in Beijer Ref. Read for free now.

Taking into account the latest results, the current consensus from Beijer Ref's eight analysts is for revenues of kr38.1b in 2025. This would reflect a satisfactory 3.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 8.5% to kr4.94. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr38.2b and earnings per share (EPS) of kr5.03 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.

View our latest analysis for Beijer Ref

There were no changes to revenue or earnings estimates or the price target of kr180, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Beijer Ref at kr205 per share, while the most bearish prices it at kr156. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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 Ref's revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2025 being well below the historical 23% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.2% annually. 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 Ref.

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 Beijer Ref'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 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 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Beijer Ref that you need to take into consideration.

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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.