Betsson AB (publ) Just Missed EPS By 11%: Here's What Analysts Think Will Happen Next

It's been a sad week for Betsson AB (publ) (STO:BETS B), who've watched their investment drop 16% to kr164 in the week since the company reported its quarterly result. Revenues were in line with forecasts, at €307m, although statutory earnings per share came in 11% below what the analysts expected, at €0.35 per share. 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.

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After the latest results, the three analysts covering Betsson are now predicting revenues of €1.22b in 2025. If met, this would reflect an okay 3.3% improvement in revenue compared to the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €1.21b and earnings per share (EPS) of €1.53 in 2025. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

See our latest analysis for Betsson

We'd also point out that thatthe analysts have made no major changes to their price target of kr178. 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 Betsson at kr200 per share, while the most bearish prices it at kr150. This is a very narrow spread of estimates, implying either that Betsson is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Betsson's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Betsson's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.8% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.6% annually. Factoring in the forecast slowdown in growth, it looks like Betsson is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

At least one of Betsson's three analysts has provided estimates out to 2027, which can be seen for free on our platform here.

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