Wihlborgs Fastigheter AB (publ) (STO:WIHL) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Wihlborgs Fastigheter AB (publ) (STO:WIHL) shareholders are probably feeling a little disappointed, since its shares fell 3.9% to kr98.55 in the week after its latest quarterly results. It was a credible result overall, with revenues of kr1.1b and statutory earnings per share of kr5.55 both in line with analyst estimates, showing that Wihlborgs Fastigheter 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the four analysts covering Wihlborgs Fastigheter are now predicting revenues of kr4.38b in 2025. If met, this would reflect an okay 2.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 11% to kr6.84. In the lead-up to this report, the analysts had been modelling revenues of kr4.36b and earnings per share (EPS) of kr6.36 in 2025. So the consensus seems to have become somewhat more optimistic on Wihlborgs Fastigheter's earnings potential following these results.

See our latest analysis for Wihlborgs Fastigheter

There's been no major changes to the consensus price target of kr114, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Wihlborgs Fastigheter, with the most bullish analyst valuing it at kr120 and the most bearish at kr100.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Wihlborgs Fastigheter's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.5% growth on an annualised basis. This is compared to a historical growth rate of 8.2% 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) 4.9% annually. Factoring in the forecast slowdown in growth, it looks like Wihlborgs Fastigheter is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Wihlborgs Fastigheter following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at kr114, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Wihlborgs Fastigheter. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Wihlborgs Fastigheter analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Wihlborgs Fastigheter (1 is significant!) that you should be aware of.

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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.