Telia Company AB (publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Investors in Telia Company AB (publ) (STO:TELIA) had a good week, as its shares rose 5.9% to close at kr35.13 following the release of its quarterly results. It looks like a credible result overall - although revenues of kr20b were in line with what the analysts predicted, Telia Company surprised by delivering a statutory profit of kr0.50 per share, a notable 13% above expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the recent earnings report, the consensus from 15 analysts covering Telia Company is for revenues of kr81.2b in 2025. This implies a noticeable 6.9% decline in revenue compared to the last 12 months. Per-share earnings are expected to ascend 18% to kr1.64. Before this earnings report, the analysts had been forecasting revenues of kr81.1b and earnings per share (EPS) of kr1.58 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Telia Company

The consensus price target was unchanged at kr35.72, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Telia Company, with the most bullish analyst valuing it at kr47.00 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Telia Company's past performance and to peers in the same industry. One more thing stood out to us about these estimates, and it's the idea that Telia Company's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 13% to the end of 2025. This tops off a historical decline of 0.2% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 1.0% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Telia Company to suffer worse than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Telia Company following these results. 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 kr35.72, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Telia Company. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Telia Company going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Telia Company that you need to take into consideration.

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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.