Systemair AB (publ) Just Beat EPS By 6.8%: Here's What Analysts Think Will Happen Next

Investors in Systemair AB (publ) (STO:SYSR) had a good week, as its shares rose 4.7% to close at kr95.80 following the release of its second-quarter results. The result was positive overall - although revenues of kr3.1b were in line with what the analysts predicted, Systemair surprised by delivering a statutory profit of kr1.14 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Systemair

Taking into account the latest results, Systemair's six analysts currently expect revenues in 2025 to be kr12.3b, approximately in line with the last 12 months. Per-share earnings are expected to soar 34% to kr3.89. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr12.3b and earnings per share (EPS) of kr3.78 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.4% to kr101. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Systemair at kr110 per share, while the most bearish prices it at kr89.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We would highlight that Systemair's revenue growth is expected to slow, with the forecast 3.0% annualised growth rate until the end of 2025 being well below the historical 9.3% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.3% per year. Factoring in the forecast slowdown in growth, it seems obvious that Systemair is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Systemair's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Systemair. Long-term earnings power is much more important than next year's profits. We have forecasts for Systemair going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Systemair that you need to take into consideration.

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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.