Arlandastad Group AB (publ) (STO:AGROUP) Just Reported And Analysts Have Been Cutting Their Estimates

Arlandastad Group AB (publ) (STO:AGROUP) missed earnings with its latest full-year results, disappointing overly-optimistic forecasters. It was a pretty negative result overall, with revenues of kr339m missing analyst predictions by 2.3%. Worse, the business reported a statutory loss of kr1.40 per share, much larger than the analysts had forecast prior to the result. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Arlandastad Group

Taking into account the latest results, the current consensus from Arlandastad Group's two analysts is for revenues of kr363.0m in 2025. This would reflect a reasonable 7.2% increase on its revenue over the past 12 months. Arlandastad Group is also expected to turn profitable, with statutory earnings of kr6.30 per share. Before this earnings report, the analysts had been forecasting revenues of kr444.0m and earnings per share (EPS) of kr6.76 in 2025. Indeed, we can see that sentiment has declined measurably after results came out, with a real cut to revenue estimates and a minor downgrade to EPS estimates to boot.

Despite the cuts to forecast earnings, there was no real change to the kr70.75 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

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 Arlandastad Group's revenue growth is expected to slow, with the forecast 7.2% annualised growth rate until the end of 2025 being well below the historical 28% 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) 4.8% per year. Even after the forecast slowdown in growth, it seems obvious that Arlandastad Group is also expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Arlandastad Group. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Arlandastad Group. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You can also see whether Arlandastad Group is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.