Results: Pierce Group AB (publ) Beat Earnings Expectations And Analysts Now Have New Forecasts

It's been a sad week for Pierce Group AB (publ) (STO:PIERCE), who've watched their investment drop 13% to kr8.66 in the week since the company reported its quarterly result. Revenues were kr537m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of kr0.44 were also better than expected, beating analyst predictions by 17%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Pierce Group's dual analysts is for revenues of kr1.91b in 2026. This reflects an okay 3.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 47% to kr0.74. Before this earnings report, the analysts had been forecasting revenues of kr1.95b and earnings per share (EPS) of kr0.77 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

See our latest analysis for Pierce Group

The average price target fell 10.0% to kr13.50, with reduced earnings forecasts clearly tied to a lower valuation estimate.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Pierce Group's rate of growth is expected to accelerate meaningfully, with the forecast 7.0% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.6% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Pierce Group to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Pierce Group going out as far as 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 Pierce 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.