Björn Borg AB (publ) Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Shareholders might have noticed that Björn Borg AB (publ) (STO:BORG) filed its third-quarter result this time last week. The early response was not positive, with shares down 3.1% to kr58.12 in the past week. Björn Borg missed revenue estimates by 6.2%, coming in atkr285m, although statutory earnings per share (EPS) of kr1.39 beat expectations, coming in 3.7% ahead of analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Björn Borg

Taking into account the latest results, the most recent consensus for Björn Borg from two analysts is for revenues of kr1.06b in 2025. If met, it would imply a meaningful 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 35% to kr4.18. Before this earnings report, the analysts had been forecasting revenues of kr1.09b and earnings per share (EPS) of kr4.22 in 2025. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The average price target was steady at kr68.00even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings.

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. The analysts are definitely expecting Björn Borg's growth to accelerate, with the forecast 8.9% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Björn Borg to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also downgraded Björn Borg's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Still, earnings are more important to the intrinsic value of the business. The consensus price target held steady at kr68.00, 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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Björn Borg .

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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.