Alfa Laval AB (publ) Just Missed Earnings - But Analysts Have Updated Their Models
Investors in Alfa Laval AB (publ) (STO:ALFA) had a good week, as its shares rose 2.0% to close at kr577 following the release of its half-yearly results. Revenues of kr18b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr4.91, missing estimates by 8.0%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the latest results, Alfa Laval's 16 analysts are now forecasting revenues of kr73.7b in 2026. This would be a credible 4.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 7.1% to kr21.24. Before this earnings report, the analysts had been forecasting revenues of kr72.1b and earnings per share (EPS) of kr21.60 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.
Check out our latest analysis for Alfa Laval
It may not be a surprise to see thatthe analysts have reconfirmed their price target of kr584, implying that the uplift in revenue is not expected to greatly contribute to Alfa Laval's valuation in the near term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Alfa Laval, with the most bullish analyst valuing it at kr690 and the most bearish at kr435 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 9.7% growth on an annualised basis. That is in line with its 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.6% annually. So although Alfa Laval is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at kr584, 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 Alfa Laval. Long-term earnings power is much more important than next year's profits. We have forecasts for Alfa Laval going out to 2028, and you can see them free on our platform here.
You can also see whether Alfa Laval is carrying too much debt, and whether its balance sheet is healthy, for free on our 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.