Shareholders of Byggmax Group AB (publ) (STO:BMAX) will be pleased this week, given that the stock price is up 15% to kr61.50 following its latest quarterly results. The result was positive overall - although revenues of kr2.1b were in line with what the analysts predicted, Byggmax Group surprised by delivering a statutory profit of kr3.83 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 Byggmax Group's twin analysts is for revenues of kr6.72b in 2027. This reflects a reasonable 6.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 16% to kr5.27. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr6.60b and earnings per share (EPS) of kr4.87 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
View our latest analysis for Byggmax Group
The consensus price target rose 11% to kr64.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.
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. One thing stands out from these estimates, which is that Byggmax Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.3% annualised growth until the end of 2027. If achieved, this would be a much better result than the 5.4% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.2% annually. So it looks like Byggmax Group is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Byggmax Group's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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 Byggmax Group going out as far as 2028, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Byggmax Group you should know about.
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