Afry AB Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
Afry AB (STO:AFRY) just released its quarterly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.0% to hit kr5.8b. Afry reported statutory earnings per share (EPS) kr1.80, which was a notable 11% above what the analysts had forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the latest results, Afry's seven analysts are now forecasting revenues of kr26.6b in 2027. This would be a satisfactory 5.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 59% to kr12.05. Before this earnings report, the analysts had been forecasting revenues of kr26.4b and earnings per share (EPS) of kr11.74 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for Afry
The consensus price target rose 6.2% to kr140, 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. Currently, the most bullish analyst values Afry at kr190 per share, while the most bearish prices it at kr100.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 4.3% growth on an annualised basis. That is in line with its 4.6% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.6% per year. So although Afry is expected to maintain its revenue growth rate, it's forecast to grow slower 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 Afry following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Afry going out to 2028, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 1 warning sign for Afry you should be aware of.
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