VBG Group AB (publ) (STO:VBG B) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year

VBG Group AB (publ) (STO:VBG B) shareholders are probably feeling a little disappointed, since its shares fell 5.3% to kr292 in the week after its latest third-quarter results. VBG Group reported kr1.4b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr4.16 beat expectations, being 4.8% higher than what the analysts 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. 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 consensus forecast from VBG Group's two analysts is for revenues of kr6.13b in 2027. This reflects a decent 9.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 28% to kr21.36. In the lead-up to this report, the analysts had been modelling revenues of kr6.14b and earnings per share (EPS) of kr22.20 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for VBG Group

The consensus price target held steady at kr400, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

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. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 7.2% growth on an annualised basis. That is in line with its 7.7% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.2% annually. It's clear that while VBG Group's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at kr400, 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. We have analyst estimates for VBG Group going out as far as 2028, and you can see them free on our platform here.

Even so, be aware that VBG Group is showing 1 warning sign in our investment analysis , you should know about...

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