Electrolux Professional AB (publ) (STO:EPRO B) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

The yearly results for Electrolux Professional AB (publ) (STO:EPRO B) were released last week, making it a good time to revisit its performance. Results were roughly in line with estimates, with revenues of kr13b and statutory earnings per share of kr2.79. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Electrolux Professional

Taking into account the latest results, the current consensus from Electrolux Professional's three analysts is for revenues of kr13.2b in 2025. This would reflect a satisfactory 4.9% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 34% to kr3.74. Before this earnings report, the analysts had been forecasting revenues of kr13.1b and earnings per share (EPS) of kr3.57 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at kr80.33, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values Electrolux Professional at kr82.00 per share, while the most bearish prices it at kr78.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Electrolux Professional is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Electrolux Professional's revenue growth is expected to slow, with the forecast 4.9% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. Compare this to the 41 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.9% per year. 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 here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Electrolux Professional following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 in mind, we wouldn't be too quick to come to a conclusion on Electrolux Professional. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Electrolux Professional analysts - going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Electrolux Professional's balance sheet, and whether we think Electrolux Professional is carrying too much debt, 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.