Rusta AB (publ) (STO:RUSTA) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

Investors in Rusta AB (publ) (STO:RUSTA) had a good week, as its shares rose 6.0% to close at kr72.05 following the release of its quarterly results. Results were roughly in line with estimates, with revenues of kr2.7b and statutory earnings per share of kr2.70. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Rusta

After the latest results, the three analysts covering Rusta are now predicting revenues of kr11.8b in 2025. If met, this would reflect a credible 4.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 27% to kr3.67. In the lead-up to this report, the analysts had been modelling revenues of kr11.8b and earnings per share (EPS) of kr3.98 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at kr83.67, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Rusta at kr95.00 per share, while the most bearish prices it at kr68.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. It's clear from the latest estimates that Rusta's rate of growth is expected to accelerate meaningfully, with the forecast 9.8% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.3% over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Rusta is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Rusta. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Rusta analysts - going out to 2027, and you can see them free on our platform here.

You can also see whether Rusta is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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.