Peab AB (publ) (STO:PEAB B) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

The analysts might have been a bit too bullish on Peab AB (publ) (STO:PEAB B), given that the company fell short of expectations when it released its first-quarter results last week. Revenues missed expectations somewhat, coming in at kr11b, but statutory earnings fell catastrophically short, with a loss of kr1.30 some 35% larger than what the analysts had predicted. 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 3 warning signs about Peab. View them for free.

Following last week's earnings report, Peab's four analysts are forecasting 2025 revenues to be kr60.3b, approximately in line with the last 12 months. Statutory earnings per share are forecast to fall 18% to kr5.90 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr60.6b and earnings per share (EPS) of kr6.02 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.

Check out our latest analysis for Peab

The analysts reconfirmed their price target of kr86.67, showing that the business is executing well and in line with expectations. 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 Peab, with the most bullish analyst valuing it at kr95.00 and the most bearish at kr80.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.8% by the end of 2025. This indicates a significant reduction from annual growth of 1.6% 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 4.7% per year. It's pretty clear that Peab's revenues are expected to perform substantially worse 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. The consensus price target held steady at kr86.67, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Peab analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Peab has 3 warning signs 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.