Results: FLSmidth & Co. A/S Beat Earnings Expectations And Analysts Now Have New Forecasts
A week ago, FLSmidth & Co. A/S (CPH:FLS) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of kr.3.9b, some 8.8% above estimates, and statutory earnings per share (EPS) coming in at kr.8.10, 45% ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, FLSmidth's eleven analysts currently expect revenues in 2026 to be kr.15.0b, approximately in line with the last 12 months. Statutory earnings per share are predicted to soar 31% to kr.38.28. In the lead-up to this report, the analysts had been modelling revenues of kr.14.8b and earnings per share (EPS) of kr.37.59 in 2026. 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.
Check out our latest analysis for FLSmidth
The analysts reconfirmed their price target of kr.609, showing that the business is executing well and in line with expectations. 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 FLSmidth, with the most bullish analyst valuing it at kr.700 and the most bearish at kr.435 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. One thing stands out from these estimates, which is that FLSmidth is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.6% annualised growth until the end of 2026. If achieved, this would be a much better result than the 5.2% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.2% per year. Although FLSmidth's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that FLSmidth's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 FLSmidth going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for FLSmidth that you need to take into consideration.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.