Sweco AB (publ) (STO:SWEC B) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?
Investors in Sweco AB (publ) (STO:SWEC B) had a good week, as its shares rose 3.8% to close at kr136 following the release of its second-quarter results. Results were roughly in line with estimates, with revenues of kr8.6b and statutory earnings per share of kr1.66. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 Sweco's five analysts is for revenues of kr34.0b in 2026. This would reflect a reasonable 4.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 13% to kr7.14. Before this earnings report, the analysts had been forecasting revenues of kr33.8b and earnings per share (EPS) of kr6.94 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for Sweco
The consensus price target was unchanged at kr178, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on Sweco, with the most bullish analyst valuing it at kr200 and the most bearish at kr165 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sweco is an easy business to forecast or the the analysts are all using similar assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sweco's past performance and to peers in the same industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 9.0% growth on an annualised basis. That is in line with its 9.3% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.5% annually. So although Sweco 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 Sweco's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr178, 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. At Simply Wall St, we have a full range of analyst estimates for Sweco going out to 2028, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Sweco .
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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.