Earnings Beat: Nolato AB (publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

As you might know, Nolato AB (publ) (STO:NOLA B) just kicked off its latest quarterly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 2.2% to hit kr2.4b. Nolato reported statutory earnings per share (EPS) kr0.79, which was a notable 12% above what the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, Nolato's four analysts currently expect revenues in 2025 to be kr9.56b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 9.1% to kr2.99. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr9.44b and earnings per share (EPS) of kr2.77 in 2025. So the consensus seems to have become somewhat more optimistic on Nolato's earnings potential following these results.

View our latest analysis for Nolato

There's been no major changes to the consensus price target of kr67.25, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. There are some variant perceptions on Nolato, with the most bullish analyst valuing it at kr70.00 and the most bearish at kr65.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Nolato is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One more thing stood out to us about these estimates, and it's the idea that Nolato's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 1.4% to the end of 2025. This tops off a historical decline of 1.0% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.3% per year. So while a broad number of companies are forecast to grow, unfortunately Nolato is expected to see its revenue affected worse than other companies in the 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 Nolato following these results. 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 kr67.25, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Nolato going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Nolato has 1 warning sign we think you should be aware of.

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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.