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

Shareholders might have noticed that Pierce Group AB (publ) (STO:PIERCE) filed its second-quarter result this time last week. The early response was not positive, with shares down 9.3% to kr11.70 in the past week. Revenues were kr523m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of kr0.29 were also better than expected, beating analyst predictions by 16%. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

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Taking into account the latest results, Pierce Group's sole analyst currently expect revenues in 2025 to be kr1.83b, approximately in line with the last 12 months. Pierce Group is also expected to turn profitable, with statutory earnings of kr0.014 per share. In the lead-up to this report, the analyst had been modelling revenues of kr1.84b and earnings per share (EPS) of kr0.12 in 2025. The analyst seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

See our latest analysis for Pierce Group

Althoughthe analyst has revised their earnings forecasts for next year, they've also lifted the consensus price target 30% to kr17.00, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

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. It's clear from the latest estimates that Pierce Group's rate of growth is expected to accelerate meaningfully, with the forecast 2.7% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Pierce Group is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Pierce Group. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Pierce Group going out as far as 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Pierce Group has 2 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.