Here's What Analysts Are Forecasting For SSAB AB (publ) (STO:SSAB A) After Its Annual Results

SSAB AB (publ) (STO:SSAB A) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. SSAB reported kr119b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr12.67 beat expectations, being 2.0% higher than what the analysts expected. 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.

See our latest analysis for SSAB

Following the recent earnings report, the consensus from 14 analysts covering SSAB is for revenues of kr111.7b in 2024. This implies a noticeable 6.5% decline in revenue compared to the last 12 months. Statutory earnings per share are forecast to plummet 39% to kr8.03 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr111.9b and earnings per share (EPS) of kr8.09 in 2024. 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 kr90.29, 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. There are some variant perceptions on SSAB, with the most bullish analyst valuing it at kr130 and the most bearish at kr55.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 revenue is expected to reverse, with a forecast 6.5% annualised decline to the end of 2024. That is a notable change from historical growth of 14% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 1.6% annually for the foreseeable future. It's pretty clear that SSAB's revenues are expected to perform substantially worse 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that SSAB's revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr90.29, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple SSAB analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for SSAB (1 is a bit unpleasant!) that we have uncovered.

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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.