Analysts Are Updating Their Trelleborg AB (publ) (STO:TREL B) Estimates After Its Yearly Results

Investors in Trelleborg AB (publ) (STO:TREL B) had a good week, as its shares rose 2.7% to close at kr419 following the release of its full-year results. Results were roughly in line with estimates, with revenues of kr34b and statutory earnings per share of kr15.73. 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 Trelleborg after the latest results.

Check out our latest analysis for Trelleborg

Taking into account the latest results, the current consensus from Trelleborg's seven analysts is for revenues of kr37.4b in 2025. This would reflect a notable 9.4% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 17% to kr18.94. Before this earnings report, the analysts had been forecasting revenues of kr36.8b and earnings per share (EPS) of kr18.75 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr437. 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 Trelleborg analyst has a price target of kr482 per share, while the most pessimistic values it at kr380. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Trelleborg's past performance and to peers in the same industry. The analysts are definitely expecting Trelleborg's growth to accelerate, with the forecast 9.4% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.6% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Trelleborg is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at kr437, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Trelleborg. Long-term earnings power is much more important than next year's profits. We have forecasts for Trelleborg 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 Trelleborg , 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.