The Tele2 AB (publ) (STO:TEL2 B) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

As you might know, Tele2 AB (publ) (STO:TEL2 B) recently reported its third-quarter numbers. It looks like the results were a bit of a negative overall. While revenues of kr7.6b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.9% to hit kr2.02 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 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 Tele2's 17 analysts is for revenues of kr31.1b in 2027. This reflects a modest 2.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dive 44% to kr8.19 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr31.0b and earnings per share (EPS) of kr8.23 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Tele2

The analysts reconfirmed their price target of kr172, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Tele2 at kr215 per share, while the most bearish prices it at kr140. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tele2's past performance and to peers in the same industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 2.1% growth on an annualised basis. That is in line with its 2.5% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 5.3% annually. So it's pretty clear that Tele2 is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Tele2's revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr172, 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 Tele2. 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 Tele2 going out to 2028, and you can see them free on our platform here..

It is also worth noting that we have found 3 warning signs for Tele2 (1 doesn't sit too well with us!) that you need to take into consideration.

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