Bilia AB (publ) Just Missed Earnings - But Analysts Have Updated Their Models

Bilia AB (publ) (STO:BILI A) shareholders are probably feeling a little disappointed, since its shares fell 7.9% to kr138 in the week after its latest second-quarter results. Results were mixed, with revenues of kr11b exceeding expectations, even as earnings per share (EPS) came up short. Statutory earnings were kr2.23 per share, -18% below whatthe analysts had forecast. 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.

See our latest analysis for Bilia

Taking into account the latest results, the current consensus from Bilia's twin analysts is for revenues of kr40.2b in 2024. This would reflect a credible 3.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 29% to kr10.90. In the lead-up to this report, the analysts had been modelling revenues of kr38.9b and earnings per share (EPS) of kr10.66 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

It will come as no surprise to learn that the analysts have increased their price target for Bilia 8.1% to kr160on the back of these upgrades.

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. We can infer from the latest estimates that forecasts expect a continuation of Bilia'shistorical trends, as the 7.4% annualised revenue growth to the end of 2024 is roughly in line with the 6.8% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.9% annually. So it's pretty clear that Bilia is forecast to grow substantially faster than its 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 Bilia following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You still need to take note of risks, for example - Bilia has 3 warning signs we think 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.

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