AAK AB (publ.) (STO:AAK) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

AAK AB (publ.) (STO:AAK) shareholders are probably feeling a little disappointed, since its shares fell 5.5% to kr319 in the week after its latest third-quarter results. It looks like the results were a bit of a negative overall. While revenues of kr11b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.5% to hit kr3.35 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for AAK AB (publ.)

After the latest results, the six analysts covering AAK AB (publ.) are now predicting revenues of kr46.3b in 2025. If met, this would reflect a credible 4.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 8.1% to kr14.47. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr46.7b and earnings per share (EPS) of kr14.58 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr331. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on AAK AB (publ.), with the most bullish analyst valuing it at kr400 and the most bearish at kr250 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that AAK AB (publ.)'s revenue growth is expected to slow, with the forecast 3.8% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.6% per year. Even after the forecast slowdown in growth, it seems obvious that AAK AB (publ.) is also expected 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple AAK AB (publ.) analysts - going out to 2026, and you can see them free on our platform here.

You can also see whether AAK AB (publ.) is carrying too much debt, and whether its balance sheet is healthy, for free 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.