Analysts Have Made A Financial Statement On Sandvik AB (publ)'s (STO:SAND) Full-Year Report

The yearly results for Sandvik AB (publ) (STO:SAND) were released last week, making it a good time to revisit its performance. Results were roughly in line with estimates, with revenues of kr123b and statutory earnings per share of kr9.75. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Sandvik

After the latest results, the 19 analysts covering Sandvik are now predicting revenues of kr131.1b in 2025. If met, this would reflect a credible 6.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 45% to kr14.14. Before this earnings report, the analysts had been forecasting revenues of kr131.0b and earnings per share (EPS) of kr14.10 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of kr239, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Sandvik analyst has a price target of kr290 per share, while the most pessimistic values it at kr190. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Sandvik shareholders.

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. We can infer from the latest estimates that forecasts expect a continuation of Sandvik'shistorical trends, as the 6.7% annualised revenue growth to the end of 2025 is roughly in line with the 8.2% annual growth 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 revenues grow 4.8% per year. So it's pretty clear that Sandvik is forecast to grow substantially faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still 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.

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 Sandvik going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Sandvik .

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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.