Results: Telia Company AB (publ) Beat Earnings Expectations And Analysts Now Have New Forecasts

It's been a good week for Telia Company AB (publ) (STO:TELIA) shareholders, because the company has just released its latest third-quarter results, and the shares gained 4.0% to kr37.35. Telia Company reported kr20b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr0.60 beat expectations, being 6.9% higher than what the analysts expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Telia Company after the latest results.

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After the latest results, the consensus from Telia Company's 16 analysts is for revenues of kr82.0b in 2026, which would reflect an uneasy 8.2% decline in revenue compared to the last year of performance. Per-share earnings are expected to bounce 49% to kr2.05. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr82.1b and earnings per share (EPS) of kr2.03 in 2026. 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.

Check out our latest analysis for Telia Company

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr37.42. 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 Telia Company, with the most bullish analyst valuing it at kr48.00 and the most bearish at kr27.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. Over the past five years, revenues have declined around 0.2% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 6.6% decline in revenue until the end of 2026. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 0.06% per year. So while a broad number of companies are forecast to grow, unfortunately Telia Company is expected to see its revenue affected worse than other companies in the 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Telia Company's revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr37.42, 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 forecasts for Telia Company going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Telia Company .

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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.