MilDef Group AB (publ) Just Recorded A 87% EPS Beat: Here's What Analysts Are Forecasting Next
MilDef Group AB (publ) (STO:MILDEF) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 7.3% to hit kr630m. MilDef Group also reported a statutory profit of kr1.25, which was an impressive 87% above what the analysts had forecast. 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. 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, the current consensus from MilDef Group's four analysts is for revenues of kr3.04b in 2026. This would reflect a decent 14% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 22% to kr6.91. In the lead-up to this report, the analysts had been modelling revenues of kr3.00b and earnings per share (EPS) of kr6.41 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
View our latest analysis for MilDef Group
The consensus price target was unchanged at kr232, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on MilDef Group, with the most bullish analyst valuing it at kr248 and the most bearish at kr210 per share. This is a very narrow spread of estimates, implying either that MilDef Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 30% growth on an annualised basis. That is in line with its 32% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 16% annually. So although MilDef Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around MilDef Group's earnings potential next year. 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 kr232, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on MilDef Group. Long-term earnings power is much more important than next year's profits. We have forecasts for MilDef Group going out to 2028, and you can see them free on our platform here.
It might also be worth considering whether MilDef Group's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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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.