Here's What Analysts Are Forecasting For Wallenstam AB (publ) (STO:WALL B) After Its Second-Quarter Results

Shareholders might have noticed that Wallenstam AB (publ) (STO:WALL B) filed its quarterly result this time last week. The early response was not positive, with shares down 8.1% to kr44.96 in the past week. Revenues beat expectations, coming in 2.5% ahead of forecasts, and the company broke even on a statutory earnings per share (EPS) level. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, Wallenstam's three analysts are now forecasting revenues of kr3.11b in 2025. This would be a modest 7.9% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of kr3.09b and earnings per share (EPS) of kr2.64 in 2025. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

Check out our latest analysis for Wallenstam

We'd also point out that thatthe analysts have made no major changes to their price target of kr44.80. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Wallenstam analyst has a price target of kr55.00 per share, while the most pessimistic values it at kr40.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wallenstam's past performance and to peers in the same industry. It's clear from the latest estimates that Wallenstam's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Wallenstam to grow faster than the wider industry.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at kr44.80, with the latest estimates not enough to have an impact on their price targets.

At least one of Wallenstam's three analysts has provided estimates out to 2027, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Wallenstam (of which 1 is significant!) 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.