Earnings Beat: Lyko Group AB (publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

It's been a good week for Lyko Group AB (publ) (STO:LYKO A) shareholders, because the company has just released its latest second-quarter results, and the shares gained 4.6% to kr146. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at kr939m, statutory earnings beat expectations by a notable 160%, coming in at kr0.87 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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, the consensus forecast from Lyko Group's four analysts is for revenues of kr4.01b in 2025. This reflects a modest 7.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 7.5% to kr4.45. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr4.06b and earnings per share (EPS) of kr3.62 in 2025. Although the revenue estimates have not really changed, we can see there's been a sizeable expansion in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

See our latest analysis for Lyko Group

The consensus price target was unchanged at kr146, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Lyko Group analyst has a price target of kr165 per share, while the most pessimistic values it at kr129. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 18% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.0% annually. So it's pretty clear that Lyko Group 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 Lyko 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. 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 Lyko Group analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Lyko Group that you need to take into consideration.

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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.