The Nolato AB (publ) (STO:NOLA B) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

Investors in Nolato AB (publ) (STO:NOLA B) had a good week, as its shares rose 6.2% to close at kr55.90 following the release of its third-quarter results. It was a workmanlike result, with revenues of kr2.4b coming in 2.3% ahead of expectations, and statutory earnings per share of kr0.61, in line with analyst appraisals. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Nolato

Taking into account the latest results, the consensus forecast from Nolato's four analysts is for revenues of kr10.3b in 2025. This reflects a credible 7.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 40% to kr2.97. In the lead-up to this report, the analysts had been modelling revenues of kr10.2b and earnings per share (EPS) of kr2.96 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 kr63.00. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Nolato at kr66.00 per share, while the most bearish prices it at kr60.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Nolato's rate of growth is expected to accelerate meaningfully, with the forecast 6.1% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.2% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.9% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Nolato is expected to grow slower than 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 in mind, we wouldn't be too quick to come to a conclusion on Nolato. Long-term earnings power is much more important than next year's profits. We have forecasts for Nolato going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Nolato that you need to be mindful 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.