Earnings Update: Stendörren Fastigheter AB (publ) (STO:STEF B) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

Investors in Stendörren Fastigheter AB (publ) (STO:STEF B) had a good week, as its shares rose 4.3% to close at kr204 following the release of its second-quarter results. It was a workmanlike result, with revenues of kr263m coming in 3.4% ahead of expectations, and statutory earnings per share of kr9.69, in line with analyst appraisals. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Stendörren Fastigheter's twin analysts are now forecasting revenues of kr1.06b in 2025. This would be a decent 9.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 126% to kr14.05. Before this earnings report, the analysts had been forecasting revenues of kr1.03b and earnings per share (EPS) of kr18.37 in 2025. While next year's revenue estimates increased, there was also a large cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

Check out our latest analysis for Stendörren Fastigheter

There's been no major changes to the price target of kr250, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation.

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. The analysts are definitely expecting Stendörren Fastigheter's growth to accelerate, with the forecast 19% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Stendörren Fastigheter 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 Stendörren Fastigheter. Happily, they also upgraded their revenue estimates, and are forecasting them 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You still need to take note of risks, for example - Stendörren Fastigheter has 2 warning signs (and 1 which is concerning) we think 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.