Earnings Miss: Peab AB (publ) Missed EPS By 5.4% And Analysts Are Revising Their Forecasts

Investors in Peab AB (publ) (STO:PEAB B) had a good week, as its shares rose 2.5% to close at kr92.65 following the release of its quarterly results. It was a pretty mixed result, with revenues beating expectations to hit kr17b. Statutory earnings fell 5.4% short of analyst forecasts, reaching kr2.09 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus from Peab's five analysts is for revenues of kr62.3b in 2026. This would reflect a satisfactory 3.7% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 7.4% to kr7.97. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr60.7b and earnings per share (EPS) of kr7.94 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.

See our latest analysis for Peab

Even though revenue forecasts increased, there was no change to the consensus price target of kr103, suggesting the analysts are focused on earnings as the driver of value creation. 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. Currently, the most bullish analyst values Peab at kr110 per share, while the most bearish prices it at kr90.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Peab is forecast to grow faster in the future than it has in the past, with revenues expected to display 7.5% annualised growth until the end of 2026. If achieved, this would be a much better result than the 0.2% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 5.1% per year. So it looks like Peab is expected to grow faster than its competitors, at least for a while.

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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 estimates - from multiple Peab analysts - going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Peab you should know about.

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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.