Here's What Analysts Are Forecasting For Elanders AB (publ) (STO:ELAN B) After Its Full-Year Results

Investors in Elanders AB (publ) (STO:ELAN B) had a good week, as its shares rose 2.5% to close at kr102 following the release of its annual results. It looks like the results were a bit of a negative overall. While revenues of kr14b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.5% to hit kr7.02 per share. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Elanders

Taking into account the latest results, the most recent consensus for Elanders from three analysts is for revenues of kr14.6b in 2024. If met, it would imply a modest 5.4% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 68% to kr11.76. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr14.7b and earnings per share (EPS) of kr12.92 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at kr190, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Elanders' revenue growth is expected to slow, with the forecast 5.4% annualised growth rate until the end of 2024 being well below the historical 7.2% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.8% per year. Even after the forecast slowdown in growth, it seems obvious that Elanders is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at kr190, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Elanders going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Elanders you should be aware of, and 1 of them is potentially serious.

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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.