Thule Group AB (publ) (STO:THULE) Just Released Its First-Quarter Earnings: Here's What Analysts Think

Investors in Thule Group AB (publ) (STO:THULE) had a good week, as its shares rose 3.3% to close at kr314 following the release of its quarterly results. Thule Group reported in line with analyst predictions, delivering revenues of kr2.4b and statutory earnings per share of kr2.83, suggesting the business is executing well and in line with its plan. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Thule Group after the latest results.

See our latest analysis for Thule Group

Taking into account the latest results, the consensus forecast from Thule Group's five analysts is for revenues of kr9.93b in 2024. This reflects a credible 6.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 17% to kr12.45. In the lead-up to this report, the analysts had been modelling revenues of kr9.78b and earnings per share (EPS) of kr12.35 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of kr312, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Thule Group at kr350 per share, while the most bearish prices it at kr270. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Thule Group is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 8.7% growth on an annualised basis. That is in line with its 8.1% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.3% annually. It's clear that while Thule Group's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at kr312, 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 Thule Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Thule Group going out to 2026, and you can see them free on our platform here.

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

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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.