Earnings Update: Husqvarna AB (publ) (STO:HUSQ B) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts
It's been a good week for Husqvarna AB (publ) (STO:HUSQ B) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.9% to kr70.86. The statutory results were mixed overall, with revenues of kr9.7b in line with analyst forecasts, but losses of kr0.27 per share, some 9.3% larger than the analysts were predicting. 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.
View our latest analysis for Husqvarna
Taking into account the latest results, the most recent consensus for Husqvarna from seven analysts is for revenues of kr50.8b in 2025. If met, it would imply a credible 4.7% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 110% to kr5.25. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr50.8b and earnings per share (EPS) of kr5.17 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 kr80.83. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Husqvarna at kr95.00 per share, while the most bearish prices it at kr55.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Husqvarna's revenue growth is expected to slow, with the forecast 3.7% annualised growth rate until the end of 2025 being well below the historical 5.8% 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) 4.4% annually. Factoring in the forecast slowdown in growth, it looks like Husqvarna 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. The consensus price target held steady at kr80.83, with the latest estimates not enough to have an impact on their price targets.
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 Husqvarna going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for Husqvarna that you need to take into consideration.
Valuation is complex, but we're here to simplify it.
Discover if Husqvarna might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
About OM:HUSQ B
Husqvarna
Produces and sells outdoor power products, watering products, and lawn care power equipment.
Flawless balance sheet established dividend payer.