Analysts Have Made A Financial Statement On Eltel AB (publ)'s (STO:ELTEL) Second-Quarter Report

The second-quarter results for Eltel AB (publ) (STO:ELTEL) were released last week, making it a good time to revisit its performance. Eltel's revenues suffered a miss, falling 5.6% short of forecasts, at €200m. Statutory earnings per share (EPS) however performed much better, reaching break-even. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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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After the latest results, the three analysts covering Eltel are now predicting revenues of €857.6m in 2026. If met, this would reflect a reasonable 2.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 130% to €0.05. Before this earnings report, the analysts had been forecasting revenues of €871.2m and earnings per share (EPS) of €0.07 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

See our latest analysis for Eltel

The consensus price target held steady at kr13.91, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

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. The analysts are definitely expecting Eltel's growth to accelerate, with the forecast 4.7% annualised growth to the end of 2026 ranking favourably alongside historical growth of 0.09% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Eltel is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Eltel. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

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

We don't want to rain on the parade too much, but we did also find 2 warning signs for Eltel (1 can't be ignored!) that you need to be mindful of.

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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.