Aros Bostadsutveckling AB (publ) Just Recorded A 146% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in Aros Bostadsutveckling AB (publ) (STO:AROS) had a good week, as its shares rose 4.3% to close at kr58.20 following the release of its annual results. Revenues were kr105m, approximately in line with whatthe analyst expected, although statutory earnings per share (EPS) crushed expectations, coming in at kr1.26, an impressive 146% ahead of estimates. Following the result, the analyst has 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Aros Bostadsutveckling

After the latest results, the solitary analyst covering Aros Bostadsutveckling are now predicting revenues of kr233.4m in 2022. If met, this would reflect a huge 123% improvement in sales compared to the last 12 months. Earnings are expected to tip over into lossmaking territory, with the analyst forecasting statutory losses of -kr1.04 per share in 2022. Before this earnings announcement, the analyst had been modelling revenues of kr231.1m and losses of kr0.82 per share in 2022. So it's pretty clear the analyst has mixed opinions on Aros Bostadsutveckling even after this update; although they reconfirmed their revenue numbers, it came at the cost of a sizeable expansion in per-share losses.

As a result, there was no major change to the consensus price target of kr63.00, with the analyst implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses.

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. It's clear from the latest estimates that Aros Bostadsutveckling's rate of growth is expected to accelerate meaningfully, with the forecast 123% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 28% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Aros Bostadsutveckling is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are 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 2024, which can be seen for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.