Bilia AB (publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in Bilia AB (publ) (STO:BILI A) had a good week, as its shares rose 4.9% to close at kr125 following the release of its quarterly results. Statutory earnings per share fell badly short of expectations, coming in at kr1.14, some 29% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at kr9.0b. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bilia after the latest results.

View our latest analysis for Bilia

After the latest results, the twin analysts covering Bilia are now predicting revenues of kr43.5b in 2025. If met, this would reflect a solid 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 46% to kr11.29. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr43.1b and earnings per share (EPS) of kr12.19 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at kr145, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

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. The analysts are definitely expecting Bilia's growth to accelerate, with the forecast 9.0% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Bilia is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Bilia. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Bilia going out as far as 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Bilia 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.