VBG Group AB (publ) Just Missed EPS By 8.6%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that VBG Group AB (publ) (STO:VBG B) released its quarterly result to the market. The early response was not positive, with shares down 5.3% to kr270 in the past week. Revenues of kr1.4b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr4.58, missing estimates by 8.6%. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

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Following last week's earnings report, VBG Group's sole analyst are forecasting 2025 revenues to be kr5.37b, approximately in line with the last 12 months. Statutory per share are forecast to be kr20.44, approximately in line with the last 12 months. Before this earnings report, the analyst had been forecasting revenues of kr5.40b and earnings per share (EPS) of kr21.20 in 2025. The analyst seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for VBG Group

It might be a surprise to learn that the consensus price target fell 9.7% to kr411, with the analyst clearly linking lower forecast earnings to the performance of the stock price.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.7% by the end of 2025. This indicates a significant reduction from annual growth of 14% 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 4.1% annually for the foreseeable future. It's pretty clear that VBG Group's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that VBG Group's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of VBG Group's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for VBG Group going out as far as 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for VBG Group that we have uncovered.

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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.