Bilia AB (publ) Just Missed EPS By 15%: Here's What Analysts Think Will Happen Next

It's shaping up to be a tough period for Bilia AB (publ) (STO:BILI A), which a week ago released some disappointing second-quarter results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at kr11b, statutory earnings missed forecasts by 15%, coming in at just kr2.08 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Following last week's earnings report, Bilia's three analysts are forecasting 2025 revenues to be kr40.3b, approximately in line with the last 12 months. Statutory earnings per share are predicted to jump 21% to kr8.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr42.5b and earnings per share (EPS) of kr9.67 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

Check out our latest analysis for Bilia

The analysts made no major changes to their price target of kr150, suggesting the downgrades are not expected to have a long-term impact on Bilia'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. The most optimistic Bilia analyst has a price target of kr160 per share, while the most pessimistic values it at kr140. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Bilia is an easy business to forecast or the the analysts are all using similar assumptions.

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 would highlight that Bilia's revenue growth is expected to slow, with the forecast 3.1% annualised growth rate until the end of 2025 being well below the historical 5.5% p.a. growth over the last five years. Compare this to the 25 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.0% per year. So it's pretty clear that, while Bilia's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Bilia. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Bilia analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Bilia has 2 warning signs (and 1 which is concerning) we think you should know about.

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.