Analysts Have Made A Financial Statement On Bredband2 i Skandinavien AB (publ)'s (STO:BRE2) First-Quarter Report

Last week, you might have seen that Bredband2 i Skandinavien AB (publ) (STO:BRE2) released its first-quarter result to the market. The early response was not positive, with shares down 2.9% to kr1.93 in the past week. The result was positive overall - although revenues of kr415m were in line with what the analysts predicted, Bredband2 i Skandinavien surprised by delivering a statutory profit of kr0.026 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Bredband2 i Skandinavien

Following the latest results, Bredband2 i Skandinavien's two analysts are now forecasting revenues of kr1.69b in 2024. This would be a reasonable 5.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 14% to kr0.11. In the lead-up to this report, the analysts had been modelling revenues of kr1.69b and earnings per share (EPS) of kr0.10 in 2024. So the consensus seems to have become somewhat more optimistic on Bredband2 i Skandinavien's earnings potential following these results.

There's been no major changes to the consensus price target of kr2.30, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Bredband2 i Skandinavien's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 6.9% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.4% annually. So it's pretty clear that, while Bredband2 i Skandinavien's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Bredband2 i Skandinavien's earnings potential next year. 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.

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 should always think about risks though. Case in point, we've spotted 1 warning sign for Bredband2 i Skandinavien 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.