Svedbergs Group AB (publ) Just Missed Earnings - But Analysts Have Updated Their Models

Investors in Svedbergs Group AB (publ) (STO:SVED B) had a good week, as its shares rose 5.7% to close at kr59.70 following the release of its quarterly results. It looks like a pretty bad result, all things considered. Although revenues of kr616m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 22% to hit kr0.76 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Svedbergs Group's four analysts is for revenues of kr2.67b in 2027. This would reflect a solid 14% increase on its revenue over the past 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr2.66b and earnings per share (EPS) of kr5.11 in 2027. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

View our latest analysis for Svedbergs Group

We'd also point out that thatthe analysts have made no major changes to their price target of kr71.50. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Svedbergs Group analyst has a price target of kr82.00 per share, while the most pessimistic values it at kr64.00. This is a very narrow spread of estimates, implying either that Svedbergs Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Svedbergs Group's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2027 being well below the historical 14% 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 7.9% annually. Even after the forecast slowdown in growth, it seems obvious that Svedbergs Group is also expected to grow faster than the wider industry.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. 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 kr71.50, with the latest estimates not enough to have an impact on their price targets.

At least one of Svedbergs Group's four analysts has provided estimates out to 2028, which can be seen for free on our platform here.

Before you take the next step you should know about the 2 warning signs for Svedbergs Group that we have uncovered.

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