NIBE Industrier AB (publ) (STO:NIBE B) Just Released Its Full-Year Earnings: Here's What Analysts Think

There's been a notable change in appetite for NIBE Industrier AB (publ) (STO:NIBE B) shares in the week since its full-year report, with the stock down 12% to kr58.42. It looks like the results were a bit of a negative overall. While revenues of kr47b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.2% to hit kr2.37 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 NIBE Industrier

Taking into account the latest results, NIBE Industrier's eight analysts currently expect revenues in 2024 to be kr47.2b, approximately in line with the last 12 months. Statutory earnings per share are forecast to fall 18% to kr1.96 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr48.0b and earnings per share (EPS) of kr2.34 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

The consensus price target held steady at kr76.18, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on NIBE Industrier, with the most bullish analyst valuing it at kr120 and the most bearish at kr53.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that NIBE Industrier's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.2% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.4% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than NIBE Industrier.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for NIBE Industrier. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at kr76.18, 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 NIBE Industrier going out to 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 NIBE Industrier , and understanding this should be part of your investment process.

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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.