Results: BTS Group AB (publ) Beat Earnings Expectations And Analysts Now Have New Forecasts

BTS Group AB (publ) (STO:BTS B) shareholders are probably feeling a little disappointed, since its shares fell 7.2% to kr333 in the week after its latest quarterly results. It looks like a credible result overall - although revenues of kr619m were what the analysts expected, BTS Group surprised by delivering a (statutory) profit of kr2.75 per share, an impressive 68% above what was forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for BTS Group

Following the latest results, BTS Group's twin analysts are now forecasting revenues of kr2.89b in 2024. This would be a satisfactory 6.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 4.0% to kr12.15 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr2.89b and earnings per share (EPS) of kr12.05 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.

The consensus price target fell 5.1% to kr370, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that BTS Group's revenue growth is expected to slow, with the forecast 8.4% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.4% annually. Even after the forecast slowdown in growth, it seems obvious that BTS Group is also expected to grow faster than the wider industry.

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. 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of BTS Group's future valuation.

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 analyst estimates for BTS Group going out as far as 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for BTS Group that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.