Tele2 AB (publ) (STO:TEL2 B) shareholders are probably feeling a little disappointed, since its shares fell 3.9% to kr161 in the week after its latest second-quarter results. Revenues of kr7.4b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr1.74, missing estimates by 7.2%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Tele2 after the latest results.
Taking into account the latest results, Tele2's 14 analysts currently expect revenues in 2026 to be kr30.3b, approximately in line with the last 12 months. Statutory earnings per share are expected to decline 11% to kr12.96 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr30.4b and earnings per share (EPS) of kr13.41 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
Check out our latest analysis for Tele2
The consensus price target held steady at kr178, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Tele2 at kr215 per share, while the most bearish prices it at kr140. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Tele2 shareholders.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Tele2's revenue growth is expected to slow, with the forecast 1.5% annualised growth rate until the end of 2026 being well below the historical 2.6% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.8% per year. Factoring in the forecast slowdown in growth, it seems obvious that Tele2 is also expected to grow slower than other industry participants.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Tele2. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Tele2's revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr178, 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. At Simply Wall St, we have a full range of analyst estimates for Tele2 going out to 2028, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 5 warning signs for Tele2 (1 is significant!) that you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.