Green Landscaping Group AB (publ) (STO:GREEN) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

It's shaping up to be a tough period for Green Landscaping Group AB (publ) (STO:GREEN), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. It was a pretty negative result overall, with revenues of kr1.3b missing analyst predictions by 7.6%. Worse, the business reported a statutory loss of kr0.33 per share, much larger than the analysts had forecast prior to the result. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Green Landscaping Group after the latest results.

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After the latest results, the three analysts covering Green Landscaping Group are now predicting revenues of kr6.56b in 2025. If met, this would reflect a satisfactory 5.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 59% to kr4.36. In the lead-up to this report, the analysts had been modelling revenues of kr6.62b and earnings per share (EPS) of kr4.64 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for Green Landscaping Group

It might be a surprise to learn that the consensus price target was broadly unchanged at kr94.50, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Green Landscaping Group, with the most bullish analyst valuing it at kr95.50 and the most bearish at kr93.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Green Landscaping Group's past performance and to peers in the same industry. We would highlight that Green Landscaping Group's revenue growth is expected to slow, with the forecast 8.0% annualised growth rate until the end of 2025 being well below the historical 26% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.1% per year. So it's pretty clear that, while Green Landscaping Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Green Landscaping 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 held steady at kr94.50, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Green Landscaping Group going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Green Landscaping Group that 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.