AB Electrolux (publ) Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next

AB Electrolux (publ) (STO:ELUX B) shareholders are probably feeling a little disappointed, since its shares fell 8.8% to kr90.92 in the week after its latest third-quarter results. Things were not great overall, with a surprise (statutory) loss of kr0.87 per share on revenues of kr33b, even though the analysts had been expecting a profit. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for AB Electrolux

Taking into account the latest results, the most recent consensus for AB Electrolux from nine analysts is for revenues of kr137.3b in 2025. If met, it would imply a credible 2.6% increase on its revenue over the past 12 months. Earnings are expected to improve, with AB Electrolux forecast to report a statutory profit of kr10.92 per share. Before this earnings report, the analysts had been forecasting revenues of kr137.5b and earnings per share (EPS) of kr12.11 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 was broadly unchanged at kr113, 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. Currently, the most bullish analyst values AB Electrolux at kr140 per share, while the most bearish prices it at kr80.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the AB Electrolux's past performance and to peers in the same industry. We would highlight that AB Electrolux's revenue growth is expected to slow, with the forecast 2.1% annualised growth rate until the end of 2025 being well below the historical 4.0% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 2.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that AB Electrolux is also expected to grow slower than other industry participants.

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 kr113, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on AB Electrolux. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple AB Electrolux analysts - going out to 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 1 warning sign for AB Electrolux 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.