Eolus Vind AB (publ) Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders of Eolus Vind AB (publ) (STO:EOLU B) will be pleased this week, given that the stock price is up 12% to kr58.50 following its latest annual results. Statutory earnings per share fell badly short of expectations, coming in at kr6.22, some 43% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at kr885m. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Eolus Vind

Following the latest results, Eolus Vind's four analysts are now forecasting revenues of kr3.72b in 2025. This would be a substantial 320% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 142% to kr15.06. In the lead-up to this report, the analysts had been modelling revenues of kr2.92b and earnings per share (EPS) of kr13.84 in 2025. Sentiment certainly seems to have improved after the latest results, with a massive increase in revenue and a small lift in earnings per share estimates.

Despite these upgrades,the analysts have not made any major changes to their price target of kr102, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Eolus Vind analyst has a price target of kr105 per share, while the most pessimistic values it at kr97.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 Eolus Vind is forecast to grow faster in the future than it has in the past, with revenues expected to display 3x annualised growth until the end of 2025. If achieved, this would be a much better result than the 8.7% 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. Not only are Eolus Vind'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 Eolus Vind following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at kr102, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Eolus Vind going out to 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 3 warning signs with Eolus Vind , and understanding these 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.