Lifco AB (publ) (STO:LIFCO B) Just Released Its Third-Quarter Earnings: Here's What Analysts Think
There's been a notable change in appetite for Lifco AB (publ) (STO:LIFCO B) shares in the week since its quarterly report, with the stock down 14% to kr280. Results were roughly in line with estimates, with revenues of kr7.4b and statutory earnings per share of kr2.15. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the most recent consensus for Lifco from eight analysts is for revenues of kr33.3b in 2027. If met, it would imply a notable 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 16% to kr10.06. Before this earnings report, the analysts had been forecasting revenues of kr33.4b and earnings per share (EPS) of kr10.07 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.
Check out our latest analysis for Lifco
The analysts reconfirmed their price target of kr352, 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. The most optimistic Lifco analyst has a price target of kr373 per share, while the most pessimistic values it at kr334. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Lifco'shistorical trends, as the 9.1% annualised revenue growth to the end of 2027 is roughly in line with the 10% annual growth 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 revenues grow 6.5% per year. So it's pretty clear that Lifco is forecast to grow substantially faster than its 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. 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 kr352, 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. At Simply Wall St, we have a full range of analyst estimates for Lifco going out to 2028, and you can see them free on our platform here..
It might also be worth considering whether Lifco's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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