AAK AB (publ.) (STO:AAK) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

Last week, you might have seen that AAK AB (publ.) (STO:AAK) released its quarterly result to the market. The early response was not positive, with shares down 7.1% to kr178 in the past week. Revenues of kr12b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr3.21, missing estimates by 4.9%. 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. 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 current consensus from AAK AB (publ.)'s six analysts is for revenues of kr50.5b in 2027. This would reflect a solid 9.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 2.8% to kr13.98. Before this earnings report, the analysts had been forecasting revenues of kr50.2b and earnings per share (EPS) of kr14.68 in 2027. 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.

Check out our latest analysis for AAK AB (publ.)

The consensus price target held steady at kr231, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values AAK AB (publ.) at kr300 per share, while the most bearish prices it at kr172. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. It's clear from the latest estimates that AAK AB (publ.)'s rate of growth is expected to accelerate meaningfully, with the forecast 7.7% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 2.5% 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 5.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that AAK AB (publ.) is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for AAK AB (publ.). 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 kr231, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for AAK AB (publ.) going out to 2028, and you can see them free on our platform here..

You can also see whether AAK AB (publ.) is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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