Earnings Update: Electrolux Professional AB (publ) (STO:EPRO B) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

Investors in Electrolux Professional AB (publ) (STO:EPRO B) had a good week, as its shares rose 7.4% to close at kr73.80 following the release of its quarterly results. Revenues of kr2.9b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr0.65, missing estimates by 2.7%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Electrolux Professional

Taking into account the latest results, the most recent consensus for Electrolux Professional from three analysts is for revenues of kr13.0b in 2025. If met, it would imply a reasonable 6.6% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 35% to kr3.56. Before this earnings report, the analysts had been forecasting revenues of kr13.0b and earnings per share (EPS) of kr3.60 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr74.33. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Electrolux Professional analyst has a price target of kr77.00 per share, while the most pessimistic values it at kr71.00. This is a very narrow spread of estimates, implying either that Electrolux Professional is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Electrolux Professional's past performance and to peers in the same industry. We would highlight that Electrolux Professional's revenue growth is expected to slow, with the forecast 5.2% annualised growth rate until the end of 2025 being well below the historical 12% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.5% annually. Factoring in the forecast slowdown in growth, it looks like Electrolux Professional is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Electrolux Professional going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Electrolux Professional 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.