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 4.9% to kr273 in the week after its latest third-quarter results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at kr657m, statutory earnings beat expectations by a notable 349%, coming in at kr9.78 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for BTS Group

Taking into account the latest results, the consensus forecast from BTS Group's dual analysts is for revenues of kr3.18b in 2025. This reflects a meaningful 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plummet 40% to kr12.71 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr3.21b and earnings per share (EPS) of kr13.58 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.

It might be a surprise to learn that the consensus price target fell 5.5% to kr345, with the analysts clearly linking lower forecast earnings to the performance of the stock price.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of BTS Group'shistorical trends, as the 11% annualised revenue growth to the end of 2025 is roughly in line with the 13% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.7% per year. So it's pretty clear that BTS Group is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for BTS Group. Happily, there were no major changes to revenue forecasts, with the business still 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.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for BTS Group (1 is a bit unpleasant) you should be aware of.

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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.