Coor Service Management Holding AB Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in Coor Service Management Holding AB (STO:COOR) had a good week, as its shares rose 5.1% to close at kr33.26 following the release of its annual results. It looks like a pretty bad result, all things considered. Although revenues of kr12b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 37% to hit kr1.30 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Coor Service Management Holding

Following last week's earnings report, Coor Service Management Holding's four analysts are forecasting 2025 revenues to be kr12.6b, approximately in line with the last 12 months. Statutory earnings per share are predicted to shoot up 105% to kr2.71. In the lead-up to this report, the analysts had been modelling revenues of kr12.7b and earnings per share (EPS) of kr3.36 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

The consensus price target held steady at kr52.75, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Coor Service Management Holding, with the most bullish analyst valuing it at kr57.50 and the most bearish at kr48.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Coor Service Management Holding's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.2% growth on an annualised basis. This is compared to a historical growth rate of 6.2% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.8% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Coor Service Management Holding.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 Simply Wall St, we have a full range of analyst estimates for Coor Service Management Holding going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Coor Service Management Holding that you should be aware of.

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.