Sweco AB (publ) (STO:SWEC B) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

It's been a good week for Sweco AB (publ) (STO:SWEC B) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.0% to kr177. Results were roughly in line with estimates, with revenues of kr6.8b and statutory earnings per share of kr1.04. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sweco after the latest results.

View our latest analysis for Sweco

Taking into account the latest results, the consensus forecast from Sweco's six analysts is for revenues of kr32.7b in 2025. This reflects a satisfactory 7.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 30% to kr6.85. In the lead-up to this report, the analysts had been modelling revenues of kr32.8b and earnings per share (EPS) of kr6.73 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr190. 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. The most optimistic Sweco analyst has a price target of kr216 per share, while the most pessimistic values it at kr180. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sweco is an easy business to forecast or the the analysts are all using similar assumptions.

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. It's pretty clear that there is an expectation that Sweco's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.1% growth on an annualised basis. This is compared to a historical growth rate of 8.7% over the past five years. Compare this to the 15 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.4% per year. So it's pretty clear that, while Sweco's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at kr190, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Sweco going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Sweco 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.