MilDef Group AB (publ) Just Beat EPS By 147%: Here's What Analysts Think Will Happen Next

MilDef Group AB (publ) (STO:MILDEF) just released its latest second-quarter results and things are looking bullish. MilDef Group delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting kr302m-13% above indicated-andkr0.58-147% above forecasts- respectively 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.

See our latest analysis for MilDef Group

Taking into account the latest results, the consensus forecast from MilDef Group's dual analysts is for revenues of kr1.25b in 2024. This reflects a notable 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 23% to kr1.34. Before this earnings report, the analysts had been forecasting revenues of kr1.24b and earnings per share (EPS) of kr1.30 in 2024. So the consensus seems to have become somewhat more optimistic on MilDef Group's earnings potential following these results.

There's been no major changes to the consensus price target of kr90.50, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MilDef Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that MilDef Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 26% growth on an annualised basis. This is compared to a historical growth rate of 35% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 15% annually. So it's pretty clear that, while MilDef Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around MilDef Group's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than 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. We have analyst estimates for MilDef Group going out as far as 2026, 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 1 warning sign with MilDef Group , and understanding this should be part of your investment process.

Have 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com