Fagerhult Group AB Just Missed EPS By 30%: Here's What Analysts Think Will Happen Next
Shareholders might have noticed that Fagerhult Group AB (STO:FAG) filed its quarterly result this time last week. The early response was not positive, with shares down 4.6% to kr16.86 in the past week. It looks like a pretty bad result, all things considered. Although revenues of kr2.0b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 30% to hit kr0.07 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, Fagerhult Group's three analysts currently expect revenues in 2026 to be kr7.89b, approximately in line with the last 12 months. The company is forecast to report a statutory loss of kr0.45 in 2026, a sharp decline from a profit over the last year. In the lead-up to this report, the analysts had been modelling revenues of kr7.85b and earnings per share (EPS) of kr1.01 in 2026. While the analysts have made no real change to their revenue estimates, we can see that the consensus is now modelling a loss next year - a clear dip in sentiment compared to the previous outlook of a profit.
See our latest analysis for Fagerhult Group
With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 11% to kr20.50, with the analysts signalling that growing losses would be a definite concern. 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. The most optimistic Fagerhult Group analyst has a price target of kr23.00 per share, while the most pessimistic values it at kr18.00. 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 revenue is expected to reverse, with a forecast 0.1% annualised decline to the end of 2026. That is a notable change from historical growth of 1.9% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Fagerhult Group is expected to lag the wider industry.
The Bottom Line
The biggest low-light for us was that the forecasts for Fagerhult Group dropped from profits to a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Fagerhult Group'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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Fagerhult Group going out to 2028, and you can see them free on our platform here.
Even so, be aware that Fagerhult Group is showing 2 warning signs in our investment analysis , you should know about...
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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.