ALM Equity AB (publ) (STO:ALM) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a shocking result from a revenue perspective, with revenues falling 38% short of analyst expectations. There was one bright spot though, with ALM Equity reporting a surprise (statutory) profit of kr4.20, defying analyst expectations of a loss. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the two analysts covering ALM Equity are now predicting revenues of kr920.0m in 2026. If met, this would reflect a meaningful 11% improvement in revenue compared to the last 12 months. Per-share losses are supposed to see a sharp uptick, reaching kr8.30. Before this latest report, the consensus had been expecting revenues of kr1.44b and kr8.30 per share in losses. So there's definitely been a change in sentiment in this update, with the analysts administering a substantial haircut to next year's revenue estimates, while at the same time holding losses per share steady.
Check out our latest analysis for ALM Equity
The consensus price target was broadly unchanged at kr103, implying that the business is performing roughly in line with expectations, despite a downwards adjustment to forecast revenue next year.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that ALM Equity is forecast to grow faster in the future than it has in the past, with revenues expected to display 23% annualised growth until the end of 2026. If achieved, this would be a much better result than the 18% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.4% per year. So it looks like ALM Equity is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for ALM Equity going out as far as 2028, and you can see them free on our platform here.
Even so, be aware that ALM Equity is showing 1 warning sign 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.