Stock Analysis

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

OM:TEL2 B
Source: Shutterstock

Investors in Tele2 AB (publ) (STO:TEL2 B) had a good week, as its shares rose 6.3% to close at kr122 following the release of its yearly results. Results were roughly in line with estimates, with revenues of kr30b and statutory earnings per share of kr5.56. 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 Tele2

earnings-and-revenue-growth
OM:TEL2 B Earnings and Revenue Growth January 31st 2025

After the latest results, the 17 analysts covering Tele2 are now predicting revenues of kr30.3b in 2025. If met, this would reflect an okay 2.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 12% to kr6.20. In the lead-up to this report, the analysts had been modelling revenues of kr30.3b and earnings per share (EPS) of kr6.19 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.

The analysts reconfirmed their price target of kr123, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Tele2 analyst has a price target of kr145 per share, while the most pessimistic values it at kr102. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 2.3% growth on an annualised basis. That is in line with its 2.4% 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 important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Tele2's revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr123, 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. We have estimates - from multiple Tele2 analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Tele2 has 2 warning signs we think you should be aware of.

Valuation is complex, but we're here to simplify it.

Discover if Tele2 might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.

About OM:TEL2 B

Tele2

Provides fixed and mobile connectivity, handset related data services, and entertainment services in Sweden, Lithuania, Latvia, and Estonia.

Proven track record average dividend payer.

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