Analysts Are Updating Their AB SKF (publ) (STO:SKF B) Estimates After Its Full-Year Results

Investors in AB SKF (publ) (STO:SKF B) had a good week, as its shares rose 3.3% to close at kr228 following the release of its annual results. AB SKF reported kr99b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr14.22 beat expectations, being 2.1% higher than what the analysts 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on AB SKF after the latest results.

See our latest analysis for AB SKF

Taking into account the latest results, the most recent consensus for AB SKF from 17 analysts is for revenues of kr101.9b in 2025. If met, it would imply a credible 3.2% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 18% to kr16.72. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr101.7b and earnings per share (EPS) of kr16.66 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 kr247, showing that the business is executing well and in line with expectations. 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. The most optimistic AB SKF analyst has a price target of kr300 per share, while the most pessimistic values it at kr165. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that AB SKF's revenue growth is expected to slow, with the forecast 3.2% annualised growth rate until the end of 2025 being well below the historical 6.5% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that AB SKF is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for AB SKF going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with AB SKF , and understanding it should be part of your investment process.

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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.