Analysts Have Made A Financial Statement On Tele2 AB (publ)'s (STO:TEL2 B) Third-Quarter Report

Tele2 AB (publ) (STO:TEL2 B) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues of kr7.4b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr1.59, missing estimates by 2.2%. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Tele2

After the latest results, the 18 analysts covering Tele2 are now predicting revenues of kr30.3b in 2025. If met, this would reflect a reasonable 2.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 11% to kr6.06. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr30.3b and earnings per share (EPS) of kr6.05 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr112. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Tele2 at kr133 per share, while the most bearish prices it at kr93.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Tele2'shistorical trends, as the 2.3% annualised revenue growth to the end of 2025 is roughly in line with the 2.2% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 3.0% annually. So it's pretty clear that Tele2 is expected to grow slower than similar companies in the same industry.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at kr112, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Tele2 going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Tele2 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.