Byggmax Group AB (publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Byggmax Group AB (publ) (STO:BMAX) just released its latest second-quarter results and things are looking bullish. The company beat forecasts, with revenue of kr2.2b, some 3.3% above estimates, and statutory earnings per share (EPS) coming in at kr2.74, 21% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, Byggmax Group's two analysts currently expect revenues in 2025 to be kr6.31b, approximately in line with the last 12 months. Per-share earnings are expected to step up 17% to kr3.09. In the lead-up to this report, the analysts had been modelling revenues of kr6.28b and earnings per share (EPS) of kr2.85 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for Byggmax Group

There's been no major changes to the consensus price target of kr57.50, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

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. For example, we noticed that Byggmax Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.9% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.6% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.1% annually. So it looks like Byggmax Group is expected to grow faster than its competitors, at least for a while.

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 Byggmax Group 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. The consensus price target held steady at kr57.50, 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 Byggmax Group. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You can also view our analysis of Byggmax Group's balance sheet, and whether we think Byggmax Group is carrying too much debt, for free on our platform here.

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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.