Here's What Analysts Are Forecasting For Billerud AB (publ) (STO:BILL) After Its Second-Quarter Results

It's been a pretty great week for Billerud AB (publ) (STO:BILL) shareholders, with its shares surging 12% to kr69.20 in the week since its latest quarterly results. Revenues of kr9.8b arrived in line with expectations, although statutory losses per share were kr0.26, an impressive 68% smaller than what broker models predicted. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Taking into account the latest results, Billerud's seven analysts currently expect revenues in 2026 to be kr39.4b, approximately in line with the last 12 months. Earnings are expected to improve, with Billerud forecast to report a statutory profit of kr0.73 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of kr39.3b and losses of kr0.48 per share in 2026. While there's been no material change to the revenue estimates, there's been a pretty clear upgrade to earnings estimates, with the analysts expecting a per-share profit compared to previous expectations of a loss. So it seems like the latest results have led to a significant increase in sentiment for Billerud.

Check out our latest analysis for Billerud

There's been no major changes to the consensus price target of kr80.83, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Billerud, with the most bullish analyst valuing it at kr94.00 and the most bearish at kr66.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's pretty clear that there is an expectation that Billerud's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.6% growth on an annualised basis. This is compared to a historical growth rate of 7.8% over the past five years. Compare this to the 33 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.0% per year. Factoring in the forecast slowdown in growth, it looks like Billerud is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been a clear step-change in belief around the business' prospects, with the analysts now expecting Billerud to become profitable next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at kr80.83, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Billerud 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 1 warning sign for Billerud you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.