Coor Service Management Holding AB Just Missed EPS By 20%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Coor Service Management Holding AB (STO:COOR) filed its quarterly result this time last week. The early response was not positive, with shares down 3.7% to kr48.54 in the past week. Revenues were in line with forecasts, at kr3.0b, although statutory earnings per share came in 20% below what the analysts expected, at kr0.50 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, Coor Service Management Holding's four analysts currently expect revenues in 2026 to be kr12.5b, approximately in line with the last 12 months. Statutory earnings per share are predicted to soar 157% to kr3.92. Before this earnings report, the analysts had been forecasting revenues of kr12.7b and earnings per share (EPS) of kr4.16 in 2026. 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 minor downgrade to their earnings per share forecasts.

See our latest analysis for Coor Service Management Holding

It might be a surprise to learn that the consensus price target was broadly unchanged at kr56.38, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Coor Service Management Holding analyst has a price target of kr60.00 per share, while the most pessimistic values it at kr52.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 Coor Service Management Holding's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.3% growth on an annualised basis. This is compared to a historical growth rate of 6.3% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 1.7% annually. 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. The consensus price target held steady at kr56.38, 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 estimates - from multiple Coor Service Management Holding analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Coor Service Management Holding you should be aware of, and 1 of them makes us a bit uncomfortable.

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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.