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Lyko Group AB (publ) Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year
Lyko Group AB (publ) (STO:LYKO A) just released its latest third-quarter results and things are looking bullish. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 12% higher than the analysts had forecast, at kr1.0b, while EPS were kr2.28 beating analyst models by 523%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the latest results, Lyko Group's four analysts are now forecasting revenues of kr4.71b in 2027. This would be a decent 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 282% to kr8.62. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr4.58b and earnings per share (EPS) of kr7.56 in 2027. So it seems there's been a definite increase in optimism about Lyko Group's future following the latest results, with a nice increase in the earnings per share forecasts in particular.
Check out our latest analysis for Lyko Group
With these upgrades, we're not surprised to see that the analysts have lifted their price target 9.5% to kr125per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Lyko Group, with the most bullish analyst valuing it at kr160 and the most bearish at kr85.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Lyko Group's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 9.6% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.2% per year. Even after the forecast slowdown in growth, it seems obvious that Lyko Group is also expected to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Lyko Group's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Lyko Group going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Lyko Group (including 1 which doesn't sit too well with us) .
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