Results: Momentum Group AB (publ) Exceeded Expectations And The Consensus Has Updated Its Estimates

Momentum Group AB (publ) (STO:MMGR B) just released its latest second-quarter results and things are looking bullish. Momentum Group beat earnings, with revenues hitting kr886m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 18%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Momentum Group from four analysts is for revenues of kr3.30b in 2026. If met, it would imply a credible 4.4% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 10% to kr4.34. In the lead-up to this report, the analysts had been modelling revenues of kr3.24b and earnings per share (EPS) of kr4.21 in 2026. So the consensus seems to have become somewhat more optimistic on Momentum Group's earnings potential following these results.

View our latest analysis for Momentum Group

The consensus price target rose 6.8% to kr158, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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 Momentum Group, with the most bullish analyst valuing it at kr170 and the most bearish at kr140 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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. It's pretty clear that there is an expectation that Momentum Group's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 8.9% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.8% per year. Even after the forecast slowdown in growth, it seems obvious that Momentum Group is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Momentum Group's earnings potential next year. 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Momentum Group going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Momentum Group that we have uncovered.

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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.