Ratos AB (publ) Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a pretty great week for Ratos AB (publ) (STO:RATO B) shareholders, with its shares surging 11% to kr36.50 in the week since its latest first-quarter results. Revenues of kr7.5b fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of kr0.76 an impressive 36% ahead of estimates. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the consensus from Ratos' twin analysts is for revenues of kr30.9b in 2025, which would reflect a small 3.7% decline in revenue compared to the last year of performance. Statutory earnings per share are predicted to soar 190% to kr4.21. Before this earnings report, the analysts had been forecasting revenues of kr31.4b and earnings per share (EPS) of kr3.95 in 2025. So the consensus seems to have become somewhat more optimistic on Ratos' earnings potential following these results.

View our latest analysis for Ratos

The consensus price target rose 11% to kr46.50, suggesting that higher earnings estimates flow through to the stock's valuation as well.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.9% by the end of 2025. This indicates a significant reduction from annual growth of 13% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.8% per year. It's pretty clear that Ratos' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Ratos' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Ratos. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Ratos going out as far as 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Ratos 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.