The Lagercrantz Group AB (publ) (STO:LAGR B) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

It's been a pretty great week for Lagercrantz Group AB (publ) (STO:LAGR B) shareholders, with its shares surging 11% to kr237 in the week since its latest second-quarter results. Results were roughly in line with estimates, with revenues of kr2.5b and statutory earnings per share of kr1.25. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Lagercrantz Group's six analysts is for revenues of kr10.5b in 2026. This would reflect a credible 5.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 3.5% to kr5.51. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr10.4b and earnings per share (EPS) of kr5.54 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Lagercrantz Group

There were no changes to revenue or earnings estimates or the price target of kr253, 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. There are some variant perceptions on Lagercrantz Group, with the most bullish analyst valuing it at kr293 and the most bearish at kr229 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lagercrantz Group's past performance and to peers in the same 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 18% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.6% per year. 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Lagercrantz Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Lagercrantz Group going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Lagercrantz Group that we have uncovered.

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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.