Earnings Update: Lagercrantz Group AB (publ) (STO:LAGR B) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

Shareholders might have noticed that Lagercrantz Group AB (publ) (STO:LAGR B) filed its quarterly result this time last week. The early response was not positive, with shares down 2.6% to kr230 in the past week. Lagercrantz Group reported kr2.5b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr1.27 beat expectations, being 2.9% higher than what the analysts expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Lagercrantz Group's seven analysts is for revenues of kr10.5b in 2026. This reflects a notable 8.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 9.2% to kr5.62. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr10.5b and earnings per share (EPS) of kr5.62 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Lagercrantz Group

There were no changes to revenue or earnings estimates or the price target of kr251, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Lagercrantz Group analyst has a price target of kr305 per share, while the most pessimistic values it at kr225. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Lagercrantz Group's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2026 being well below the historical 19% 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 6.5% annually. So it's pretty clear that, while Lagercrantz Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Lagercrantz Group analysts - going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Lagercrantz Group that you need to be mindful 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.