Evolution AB (publ) (STO:EVO) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

It's been a good week for Evolution AB (publ) (STO:EVO) shareholders, because the company has just released its latest second-quarter results, and the shares gained 2.3% to kr714. Evolution reported in line with analyst predictions, delivering revenues of €518m and statutory earnings per share of €1.27, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following last week's earnings report, Evolution's 16 analysts are forecasting 2026 revenues to be €2.09b, approximately in line with the last 12 months. Statutory earnings per share are expected to shrink 3.6% to €5.32 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €2.11b and earnings per share (EPS) of €5.30 in 2026. 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.

See our latest analysis for Evolution

There were no changes to revenue or earnings estimates or the price target of kr698, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Evolution, with the most bullish analyst valuing it at kr1,103 and the most bearish at kr527 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Evolution's revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2026 being well below the historical 16% 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 6.9% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Evolution.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Evolution's revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr698, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Evolution going out to 2028, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.