Bufab AB (publ) (STO:BUFAB) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Bufab AB (publ) (STO:BUFAB) just released its latest quarterly report and things are not looking great. Results look to have been somewhat negative - revenue fell 2.1% short of analyst estimates at kr2.0b, and statutory earnings of kr0.80 per share missed forecasts by 4.8%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, Bufab's three analysts are now forecasting revenues of kr8.15b in 2025. This would be a modest 2.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 6.3% to kr3.32. Before this earnings report, the analysts had been forecasting revenues of kr8.19b and earnings per share (EPS) of kr3.35 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.

See our latest analysis for Bufab

There were no changes to revenue or earnings estimates or the price target of kr103, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Bufab at kr105 per share, while the most bearish prices it at kr100.00. This is a very narrow spread of estimates, implying either that Bufab is an easy company to value, or - more likely - the analysts are relying heavily on some key 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 Bufab's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.6% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.9% 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 Bufab.

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 Bufab's revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr103, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Bufab going out to 2027, and you can see them free on our platform here..

Even so, be aware that Bufab is showing 1 warning sign in our investment analysis , you should know about...

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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.