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

Last week, you might have seen that AAK AB (publ.) (STO:AAK) released its full-year result to the market. The early response was not positive, with shares down 5.4% to kr306 in the past week. It was a credible result overall, with revenues of kr45b and statutory earnings per share of kr13.62 both in line with analyst estimates, showing that AAK AB (publ.) is executing in line with expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for AAK AB (publ.)

After the latest results, the eight analysts covering AAK AB (publ.) are now predicting revenues of kr48.0b in 2025. If met, this would reflect an okay 6.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 7.2% to kr14.61. Before this earnings report, the analysts had been forecasting revenues of kr47.9b and earnings per share (EPS) of kr14.68 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.

There were no changes to revenue or earnings estimates or the price target of kr342, suggesting that the company has met expectations in its recent result. 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 kr420 and the most bearish at kr255 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that AAK AB (publ.)'s revenue growth is expected to slow, with the forecast 6.6% annualised growth rate until the end of 2025 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.7% annually. 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 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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at kr342, 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. We have forecasts for AAK AB (publ.) going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for AAK AB (publ.) 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.