Arjo AB (publ) (STO:ARJO B) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in Arjo AB (publ) (STO:ARJO B) had a good week, as its shares rose 5.0% to close at kr39.84 following the release of its full-year results. Arjo reported in line with analyst predictions, delivering revenues of kr11b and statutory earnings per share of kr1.83, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Arjo

Following the latest results, Arjo's six analysts are now forecasting revenues of kr11.9b in 2025. This would be a modest 5.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 40% to kr2.55. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr11.9b and earnings per share (EPS) of kr2.61 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 kr44.17, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Arjo at kr55.00 per share, while the most bearish prices it at kr39.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Arjo's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Arjo'shistorical trends, as the 5.2% annualised revenue growth to the end of 2025 is roughly in line with the 5.5% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 17% per year. So although Arjo is expected to maintain its revenue growth rate, it's forecast to grow slower 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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Arjo's revenue is expected to perform worse 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.

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 Arjo going out to 2027, and you can see them free on our platform here..

Even so, be aware that Arjo is showing 1 warning sign in our investment analysis , 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.