Husqvarna AB (publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

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 2.5% to kr46.07. Statutory earnings per share of kr1.69 unfortunately missed expectations by 16%, although it was encouraging to see revenues of kr15b exceed expectations by 2.3%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've discovered 4 warning signs about Husqvarna. View them for free.

Taking into account the latest results, Husqvarna's six analysts currently expect revenues in 2025 to be kr47.8b, approximately in line with the last 12 months. Per-share earnings are expected to leap 122% to kr3.78. In the lead-up to this report, the analysts had been modelling revenues of kr48.8b and earnings per share (EPS) of kr4.11 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for Husqvarna

The average price target fell 5.9% to kr62.70, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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 kr70.00 per share, while the most bearish prices it at kr48.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Husqvarna shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.4% by the end of 2025. This indicates a significant reduction from annual growth of 4.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.0% per year. It's pretty clear that Husqvarna's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Husqvarna. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Husqvarna's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Husqvarna's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Husqvarna going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 4 warning signs for Husqvarna that we have uncovered.

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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.