The SSAB AB (publ) (STO:SSAB A) Third-Quarter Results Are Out And Analysts Have Published New Forecasts
Shareholders might have noticed that SSAB AB (publ) (STO:SSAB A) filed its third-quarter result this time last week. The early response was not positive, with shares down 4.3% to kr93.66 in the past week. Results were roughly in line with estimates, with revenues of kr26b and statutory earnings per share of kr1.56. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on SSAB after the latest results.
Taking into account the latest results, the consensus forecast from SSAB's 15 analysts is for revenues of kr117.4b in 2027. This reflects a solid 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 82% to kr10.39. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr116.7b and earnings per share (EPS) of kr10.37 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for SSAB
It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr115. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values SSAB at kr140 per share, while the most bearish prices it at kr88.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await SSAB shareholders.
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. For example, we noticed that SSAB's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 13% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 3.0% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.9% per year. Not only are SSAB's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.
With that in mind, we wouldn't be too quick to come to a conclusion on SSAB. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for SSAB going out to 2028, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 1 warning sign for SSAB that you need to be mindful of.
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