Earnings Beat: Sensys Gatso Group AB (publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Sensys Gatso Group AB (publ) (STO:SGG) investors will be delighted, with the company turning in some strong numbers with its latest results. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 10% higher than the analysts had forecast, at kr204m, while EPS were kr1.26 beating analyst models by 110%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, Sensys Gatso Group's twin analysts are now forecasting revenues of kr786.7m in 2026. This would be a solid 8.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 6.7% to kr3.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr777.2m and earnings per share (EPS) of kr3.34 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the solid gain to earnings per share expectations following these results.
See our latest analysis for Sensys Gatso Group
The consensus price target was unchanged at kr70.00, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Sensys Gatso Group's growth to accelerate, with the forecast 17% annualised growth to the end of 2026 ranking favourably alongside historical growth of 9.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sensys Gatso Group to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sensys Gatso Group following these results. 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 kr70.00, with the latest estimates not enough to have an impact on their price targets.
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 analyst estimates for Sensys Gatso Group going out as far as 2028, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Sensys Gatso Group that you need to be mindful of.
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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.