Earnings Miss: BTS Group AB (publ) Missed EPS By 21% And Analysts Are Revising Their Forecasts

As you might know, BTS Group AB (publ) (STO:BTS B) last week released its latest quarterly, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at kr647m, statutory earnings missed forecasts by an incredible 21%, coming in at just kr1.33 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

We've discovered 3 warning signs about BTS Group. View them for free.

After the latest results, the dual analysts covering BTS Group are now predicting revenues of kr2.97b in 2025. If met, this would reflect an okay 4.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plummet 40% to kr11.14 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr3.02b and earnings per share (EPS) of kr11.87 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

View our latest analysis for BTS Group

It might be a surprise to learn that the consensus price target was broadly unchanged at kr350, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the BTS Group's past performance and to peers in the same industry. We would highlight that BTS Group's revenue growth is expected to slow, with the forecast 6.4% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. Compare this to the 16 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.5% per year. Factoring in the forecast slowdown in growth, it looks like BTS Group is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at kr350, with the latest estimates not enough to have an impact on their price targets.

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 BTS Group going out as far as 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for BTS Group (of which 1 is potentially serious!) 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.