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

AB Volvo (publ) (STO:VOLV B) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. AB Volvo missed earnings this time around, with kr117b revenue coming in 3.4% below what the analysts had modelled. Statutory earnings per share (EPS) of kr4.93 also fell short of expectations by 12%. 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 AB Volvo after the latest results.

Check out our latest analysis for AB Volvo

Following last week's earnings report, AB Volvo's 17 analysts are forecasting 2025 revenues to be kr528.3b, approximately in line with the last 12 months. Statutory per share are forecast to be kr25.17, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of kr532.0b and earnings per share (EPS) of kr25.24 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 kr311. 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 AB Volvo analyst has a price target of kr380 per share, while the most pessimistic values it at kr263. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.3% by the end of 2025. This indicates a significant reduction from annual growth of 9.1% 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 4.3% annually for the foreseeable future. It's pretty clear that AB Volvo's revenues are expected to perform substantially worse than 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that AB Volvo's revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr311, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for AB Volvo going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for AB Volvo you should be aware of, and 1 of them can't be ignored.

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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.