Revenue Beat: Beijer Electronics Group AB (publ) Exceeded Revenue Forecasts By 15% And Analysts Are Updating Their Estimates

Shareholders of Beijer Electronics Group AB (publ) (STO:BELE) will be pleased this week, given that the stock price is up 18% to kr70.00 following its latest quarterly results. Beijer Electronics Group beat revenue forecasts by a solid 15% to hit kr533m. Statutory earnings per share came in at kr1.24, in line with 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.

View our latest analysis for Beijer Electronics Group

Taking into account the latest results, the most recent consensus for Beijer Electronics Group from twin analysts is for revenues of kr2.05b in 2022 which, if met, would be a decent 11% increase on its sales over the past 12 months. Statutory earnings per share are predicted to leap 57% to kr4.15. Before this earnings report, the analysts had been forecasting revenues of kr1.92b and earnings per share (EPS) of kr3.93 in 2022. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of kr90.00, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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. The analysts are definitely expecting Beijer Electronics Group's growth to accelerate, with the forecast 23% annualised growth to the end of 2022 ranking favourably alongside historical growth of 6.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Beijer Electronics Group to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Beijer Electronics Group's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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.

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 analyst estimates for Beijer Electronics Group going out as far as 2024, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Beijer Electronics Group that 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.