Fastighets AB Balder (publ) (STO:BALD B) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

Last week saw the newest quarterly earnings release from Fastighets AB Balder (publ) (STO:BALD B), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of kr3.4b and statutory earnings per share of kr2.82 both in line with analyst estimates, showing that Fastighets AB Balder is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Fastighets AB Balder's four analysts is for revenues of kr13.8b in 2025. This reflects a credible 2.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 4.8% to kr5.80. In the lead-up to this report, the analysts had been modelling revenues of kr13.8b and earnings per share (EPS) of kr6.71 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

See our latest analysis for Fastighets AB Balder

The consensus price target held steady at kr82.80, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Fastighets AB Balder analyst has a price target of kr90.00 per share, while the most pessimistic values it at kr74.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Fastighets AB Balder is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Fastighets AB Balder's revenue growth is expected to slow, with the forecast 5.8% 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 4.6% annually. So it's pretty clear that, while Fastighets AB Balder's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Fastighets AB Balder. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr82.80, with the latest estimates not enough to have an impact on their price targets.

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 Fastighets AB Balder analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Fastighets AB Balder you should be aware of, and 1 of them doesn't sit too well with us.

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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.