Earnings Miss: Lindab International AB (publ) Missed EPS By 17% And Analysts Are Revising Their Forecasts
It's been a sad week for Lindab International AB (publ) (STO:LIAB), who've watched their investment drop 11% to kr120 in the week since the company reported its quarterly result. It was not a great result overall. Although revenues beat expectations, hitting kr3.3b, statutory earnings missed analyst forecasts by 17%, coming in at just kr1.77 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following last week's earnings report, Lindab International's three analysts are forecasting 2026 revenues to be kr12.7b, approximately in line with the last 12 months. Statutory earnings per share are forecast to decline 18% to kr7.27 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr12.7b and earnings per share (EPS) of kr8.58 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.
Check out our latest analysis for Lindab International
The average price target fell 14% to kr144, with reduced earnings forecasts clearly tied to a lower valuation estimate. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Lindab International, with the most bullish analyst valuing it at kr166 and the most bearish at kr130 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Lindab International's revenue growth is expected to slow, with the forecast 0.5% annualised growth rate until the end of 2026 being well below the historical 6.1% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.5% annually. Factoring in the forecast slowdown in growth, it seems obvious that Lindab International is also expected to grow slower than other industry participants.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Lindab International. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Lindab International's revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn't be too quick to come to a conclusion on Lindab International. Long-term earnings power is much more important than next year's profits. We have forecasts for Lindab International going out to 2028, and you can see them free on our platform here.
It might also be worth considering whether Lindab International'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.