Analysts Are Updating Their Eltel AB (publ) (STO:ELTEL) Estimates After Its Full-Year Results

Eltel AB (publ) (STO:ELTEL) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenue hit €829m in line with forecasts, although the company reported a statutory loss per share of €0.21 that was somewhat smaller than 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Eltel

Taking into account the latest results, the current consensus from Eltel's twin analysts is for revenues of €846.9m in 2025. This would reflect a reasonable 2.2% increase on its revenue over the past 12 months. Earnings are expected to improve, with Eltel forecast to report a statutory profit of €0.025 per share. Before this earnings report, the analysts had been forecasting revenues of €852.5m and earnings per share (EPS) of €0.015 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the sizeable expansion in earnings per share expectations following these results.

There's been no major changes to the consensus price target of kr7.20, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Eltel is forecast to grow faster in the future than it has in the past, with revenues expected to display 2.2% annualised growth until the end of 2025. If achieved, this would be a much better result than the 4.8% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.5% annually for the foreseeable future. So although Eltel's revenue growth is expected to improve, it is still expected to grow slower than the industry.

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 Eltel 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. The consensus price target held steady at kr7.20, with the latest estimates not enough to have an impact on their price targets.

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 analyst estimates for Eltel going out as far as 2027, 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 Eltel , 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.