Analysts Have Been Trimming Their Eolus Aktiebolag (publ) (STO:EOLU B) Price Target After Its Latest Report

It's been a sad week for Eolus Aktiebolag (publ) (STO:EOLU B), who've watched their investment drop 12% to kr35.80 in the week since the company reported its quarterly result. Revenues came in 63% better than analyst models expected, at kr200m, although statutory losses ballooned 61% to kr3.87, which is much worse than what was forecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the consensus from Eolus Aktiebolag's two analysts is for revenues of kr1.98b in 2026, which would reflect a stressful 40% decline in revenue compared to the last year of performance. Statutory earnings per share are expected to dive 23% to kr8.44 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr1.91b and earnings per share (EPS) of kr10.41 in 2026. So it's pretty clear the analysts have mixed opinions on Eolus Aktiebolag after the latest results; even though they upped their revenue numbers, it came at the cost of a substantial drop in per-share earnings expectations.

View our latest analysis for Eolus Aktiebolag

The consensus price target fell 17% to kr85.00, suggesting that the analysts are primarily focused on earnings as the driver of value for this business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One more thing stood out to us about these estimates, and it's the idea that Eolus Aktiebolag's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 34% to the end of 2026. This tops off a historical decline of 0.3% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 5.2% annually. So while a broad number of companies are forecast to grow, unfortunately Eolus Aktiebolag is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Eolus Aktiebolag 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.