Storskogen Group AB (publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a mediocre week for Storskogen Group AB (publ) (STO:STOR B) shareholders, with the stock dropping 15% to kr10.75 in the week since its latest first-quarter results. Revenues were in line with forecasts, at kr7.9b, although statutory earnings per share came in 19% below what the analysts expected, at kr0.12 per share. 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.

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Following last week's earnings report, Storskogen Group's five analysts are forecasting 2025 revenues to be kr33.3b, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 5,137% to kr0.80. In the lead-up to this report, the analysts had been modelling revenues of kr33.8b and earnings per share (EPS) of kr0.84 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Check out our latest analysis for Storskogen Group

It might be a surprise to learn that the consensus price target fell 8.2% to kr16.16, with the analysts clearly linking lower forecast earnings to the performance of the stock price. 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 Storskogen Group analyst has a price target of kr19.00 per share, while the most pessimistic values it at kr11.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Storskogen Group's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 1.7% annualised decline to the end of 2025. That is a notable change from historical growth of 29% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.8% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Storskogen Group is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Storskogen Group. 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Storskogen Group's future valuation.

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 forecasts for Storskogen Group going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Storskogen Group has 3 warning signs (and 1 which is a bit concerning) we think you should know about.

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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.