Wall to Wall Group AB Just Missed Earnings - But Analysts Have Updated Their Models

Wall to Wall Group AB (STO:WTW A) just released its latest yearly report and things are not looking great. Results showed a clear earnings miss, with kr919m revenue coming in 2.3% lower than what the analystsexpected. Statutory earnings per share (EPS) of kr1.01 missed the mark badly, arriving some 52% below what was expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Wall to Wall Group

Taking into account the latest results, the most recent consensus for Wall to Wall Group from twin analysts is for revenues of kr985.0m in 2025. If met, it would imply a reasonable 7.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 125% to kr2.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr1.01b and earnings per share (EPS) of kr2.32 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 kr55.50even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wall to Wall Group's past performance and to peers in the same industry. For example, we noticed that Wall to Wall Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 7.2% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.9% a year over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.8% annually. Not only are Wall to Wall Group's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at kr55.50, 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 analyst estimates for Wall to Wall Group going out as far as 2027, and you can see them free on our platform here.

Even so, be aware that Wall to Wall Group is showing 3 warning signs in our investment analysis , you should know about...

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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.