Eltel AB (publ) (STO:ELTEL) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a pretty great week for Eltel AB (publ) (STO:ELTEL) shareholders, with its shares surging 11% to kr8.10 in the week since its latest first-quarter results. Revenues of €170m arrived in line with expectations, although statutory losses per share were €0.02, an impressive 50% smaller than what broker models predicted. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the dual analysts covering Eltel are now predicting revenues of €863.0m in 2025. If met, this would reflect an okay 5.0% improvement in revenue compared to the last 12 months. Eltel is also expected to turn profitable, with statutory earnings of €0.04 per share. Before this earnings report, the analysts had been forecasting revenues of €846.9m and earnings per share (EPS) of €0.015 in 2025. Although the revenue estimates have not really changed, we can see there's been a great increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

See our latest analysis for Eltel

The consensus price target rose 33% to kr9.02, suggesting that higher earnings estimates flow through to the stock's valuation as well.

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. 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 6.7% annualised growth until the end of 2025. If achieved, this would be a much better result than the 3.8% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 5.0% per year. Not only are Eltel's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Eltel going out as far as 2027, and you can see them free on our platform here.

You can also see whether Eltel is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.