Berner Industrier AB Just Missed EPS By 23%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Berner Industrier AB (STO:BERNER B) released its quarterly result to the market. The early response was not positive, with shares down 9.8% to kr30.50 in the past week. It looks like a pretty bad result, all things considered. Although revenues of kr217m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 23% to hit kr0.51 per share. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Berner Industrier after the latest results.

View our latest analysis for Berner Industrier

Taking into account the latest results, the current consensus from Berner Industrier's sole analyst is for revenues of kr992.0m in 2025. This would reflect a satisfactory 4.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 25% to kr2.62. Before this earnings report, the analyst had been forecasting revenues of kr983.0m and earnings per share (EPS) of kr2.75 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analyst did make a minor downgrade to their earnings per share forecasts.

Despite cutting their earnings forecasts,the analyst has lifted their price target 19% to kr47.50, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Berner Industrier's past performance and to peers in the same industry. We would highlight that Berner Industrier's revenue growth is expected to slow, with the forecast 3.3% annualised growth rate until the end of 2025 being well below the historical 8.3% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Berner Industrier.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Berner Industrier. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You still need to take note of risks, for example - Berner Industrier 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.