Bredband2 i Skandinavien AB (publ) (STO:BRE2) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

Last week saw the newest second-quarter earnings release from Bredband2 i Skandinavien AB (publ) (STO:BRE2), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of kr430m and statutory earnings per share of kr0.025 both in line with analyst estimates, showing that Bredband2 i Skandinavien is executing in line with expectations. 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.

See our latest analysis for Bredband2 i Skandinavien

Taking into account the latest results, the current consensus from Bredband2 i Skandinavien's two analysts is for revenues of kr1.72b in 2024. This would reflect a satisfactory 4.4% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 7.0% to kr0.11. Before this earnings report, the analysts had been forecasting revenues of kr1.70b 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bredband2 i Skandinavien's past performance and to peers in the same industry. We would highlight that Bredband2 i Skandinavien's revenue growth is expected to slow, with the forecast 9.1% annualised growth rate until the end of 2024 being well below the historical 20% 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 2.3% 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.

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 analyst estimates for Bredband2 i Skandinavien going out as far as 2026, and you can see them free on our platform here.

You can also see our analysis of Bredband2 i Skandinavien's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.