Earnings Update: Lagercrantz Group AB (publ) (STO:LAGR B) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

Last week, you might have seen that Lagercrantz Group AB (publ) (STO:LAGR B) released its quarterly result to the market. The early response was not positive, with shares down 3.2% to kr230 in the past week. It looks like the results were a bit of a negative overall. While revenues of kr2.9b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.3% to hit kr1.53 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, Lagercrantz Group's six analysts are now forecasting revenues of kr12.1b in 2027. This would be a solid 9.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 11% to kr6.76. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr12.0b and earnings per share (EPS) of kr6.80 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Lagercrantz Group

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr273. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Lagercrantz Group, with the most bullish analyst valuing it at kr290 and the most bearish at kr250 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Lagercrantz Group's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2027 being well below the historical 16% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.9% annually. So it's pretty clear that, while Lagercrantz Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. 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 kr273, 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 Lagercrantz Group. 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 Lagercrantz Group going out to 2029, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Lagercrantz Group .

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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.