Earnings Beat: Clas Ohlson AB (publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Last week, you might have seen that Clas Ohlson AB (publ) (STO:CLAS B) released its quarterly result to the market. The early response was not positive, with shares down 3.5% to kr450 in the past week. Clas Ohlson reported kr3.3b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr4.71 beat expectations, being 6.3% higher than what the analysts expected. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from Clas Ohlson's four analysts is for revenues of kr14.2b in 2027. This reflects a decent 9.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 13% to kr22.53. Before this earnings report, the analysts had been forecasting revenues of kr14.0b and earnings per share (EPS) of kr21.75 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Clas Ohlson
The consensus price target rose 6.6% to kr466, suggesting that higher earnings estimates flow through to the stock's valuation as well. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Clas Ohlson, with the most bullish analyst valuing it at kr530 and the most bearish at kr400 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. It's clear from the latest estimates that Clas Ohlson's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 9.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Clas Ohlson is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Clas Ohlson'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 Clas Ohlson analysts - going out to 2029, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Clas Ohlson that you need to take into consideration.
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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.