Stock Analysis

KlaraBo Sverige AB (publ) Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

OM:KLARA B
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KlaraBo Sverige AB (publ) (STO:KLARA B) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like a credible result overall - although revenues of kr630m were what the analysts expected, KlaraBo Sverige surprised by delivering a (statutory) profit of kr1.44 per share, an impressive 424% above what was forecast. 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. 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 KlaraBo Sverige

earnings-and-revenue-growth
OM:KLARA B Earnings and Revenue Growth February 19th 2025

Taking into account the latest results, the current consensus from KlaraBo Sverige's twin analysts is for revenues of kr736.9m in 2025. This would reflect a decent 17% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 4.8% to kr1.26. In the lead-up to this report, the analysts had been modelling revenues of kr719.9m and earnings per share (EPS) of kr1.24 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.

Even though revenue forecasts increased, there was no change to the consensus price target of kr26.80, suggesting the analysts are focused on earnings as the driver of value creation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that KlaraBo Sverige's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 27% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.7% per year. Even after the forecast slowdown in growth, it seems obvious that KlaraBo Sverige 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to 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.

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. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with KlaraBo Sverige (including 1 which is concerning) .

Valuation is complex, but we're here to simplify it.

Discover if KlaraBo Sverige might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.