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

Svedbergs Group AB (publ) (STO:SVED B) just released its latest quarterly report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at kr512m, statutory earnings missed forecasts by an incredible 39%, coming in at just kr0.53 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Svedbergs Group

Taking into account the latest results, the consensus forecast from Svedbergs Group's three analysts is for revenues of kr2.30b in 2025. This reflects a notable 9.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 58% to kr3.82. Before this earnings report, the analysts had been forecasting revenues of kr2.31b and earnings per share (EPS) of kr3.89 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.

The consensus price target rose 13% to kr53.50despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Svedbergs Group's earnings by assigning a price premium. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Svedbergs Group, with the most bullish analyst valuing it at kr60.00 and the most bearish at kr47.00 per share. This is a very narrow spread of estimates, implying either that Svedbergs Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that Svedbergs Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.3% growth on an annualised basis. This is compared to a historical growth rate of 29% over the past five years. Compare this to the 14 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.2% per year. Factoring in the forecast slowdown in growth, it looks like Svedbergs Group is forecast to grow at about the same rate as 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Svedbergs Group. 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 Svedbergs Group going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Svedbergs Group has 2 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.