Lyko Group AB (publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Lyko Group AB (publ) (STO:LYKO A) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of kr1.0b, some 3.1% above estimates, and statutory earnings per share (EPS) coming in at kr2.04, 165% 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Lyko Group after the latest results.
Taking into account the latest results, the most recent consensus for Lyko Group from four analysts is for revenues of kr4.15b in 2026. If met, it would imply a credible 3.7% increase on its revenue over the past 12 months. Earnings are expected to improve, with Lyko Group forecast to report a statutory profit of kr2.83 per share. Before this earnings report, the analysts had been forecasting revenues of kr4.12b and earnings per share (EPS) of kr2.21 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the considerable lift to earnings per share expectations following these results.
Check out our latest analysis for Lyko Group
The consensus price target rose 26% to kr99.25, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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 Lyko Group at kr140 per share, while the most bearish prices it at kr85.00. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Lyko Group's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.5% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.8% annually. So it's pretty clear that, while Lyko Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Lyko 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Lyko Group analysts - going out to 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for Lyko Group you should be aware of, and 1 of them shouldn't be ignored.
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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.