Analysts Are Updating Their BTS Group AB (publ) (STO:BTS B) Estimates After Its Second-Quarter Results

BTS Group AB (publ) (STO:BTS B) shareholders are probably feeling a little disappointed, since its shares fell 4.5% to kr279 in the week after its latest second-quarter results. BTS Group reported kr730m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr3.11 beat expectations, being 4.9% higher than what the analysts expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for BTS Group

Taking into account the latest results, the current consensus from BTS Group's twin analysts is for revenues of kr2.87b in 2024. This would reflect a modest 4.4% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dip 2.8% to kr12.29 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr2.85b and earnings per share (EPS) of kr12.28 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of kr365, suggesting that the company has met expectations in its recent result.

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 BTS Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 9.0% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.0% per year. So it's pretty clear that, while BTS Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Even so, be aware that BTS Group is showing 2 warning signs in our investment analysis , 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.