Sandvik AB (publ) (STO:SAND) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a pretty great week for Sandvik AB (publ) (STO:SAND) shareholders, with its shares surging 11% to kr232 in the week since its latest full-year results. The result was positive overall - although revenues of kr123b were in line with what the analysts predicted, Sandvik surprised by delivering a statutory profit of kr9.75 per share, modestly greater than expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Sandvik

Taking into account the latest results, the most recent consensus for Sandvik from 20 analysts is for revenues of kr130.7b in 2025. If met, it would imply a credible 6.4% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 39% to kr13.57. Before this earnings report, the analysts had been forecasting revenues of kr129.5b and earnings per share (EPS) of kr13.31 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of kr236, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Sandvik, with the most bullish analyst valuing it at kr290 and the most bearish at kr179 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Sandvik's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.4% growth on an annualised basis. This is compared to a historical growth rate of 8.2% 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 4.8% annually. Even after the forecast slowdown in growth, it seems obvious that Sandvik is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sandvik's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Sandvik. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Sandvik going out to 2027, and you can see them free on our platform here..

Even so, be aware that Sandvik is showing 1 warning sign in our investment analysis , you should know about...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.