Trelleborg AB (publ) (STO:TREL B) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

Trelleborg AB (publ) (STO:TREL B) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to kr452 in the week after its latest quarterly results. The result was positive overall - although revenues of kr9.2b were in line with what the analysts predicted, Trelleborg surprised by delivering a statutory profit of kr4.92 per share, modestly greater than expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Trelleborg after the latest results.

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Taking into account the latest results, the most recent consensus for Trelleborg from ten analysts is for revenues of kr40.3b in 2027. If met, it would imply a meaningful 14% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 26% to kr22.62. Before this earnings report, the analysts had been forecasting revenues of kr40.0b and earnings per share (EPS) of kr22.62 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Trelleborg

The analysts reconfirmed their price target of kr472, 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 Trelleborg at kr549 per share, while the most bearish prices it at kr370. 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.

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 clear from the latest estimates that Trelleborg's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 6.6% 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 8.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Trelleborg to grow faster than the wider 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr472, with the latest estimates not enough to have an impact on their price targets.

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

You should always think about risks though. Case in point, we've spotted 1 warning sign for Trelleborg you should be aware of.

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