Last week, you might have seen that Sandvik AB (publ) (STO:SAND) released its quarterly result to the market. The early response was not positive, with shares down 2.8% to kr347 in the past week. Results overall were respectable, with statutory earnings of kr4.60 per share roughly in line with what the analysts had forecast. Revenues of kr38b came in 2.4% ahead of analyst predictions. 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 Sandvik after the latest results.
Following the latest results, Sandvik's 19 analysts are now forecasting revenues of kr166.4b in 2027. This would be a huge 21% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 31% to kr19.99. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr164.7b and earnings per share (EPS) of kr19.68 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
Check out our latest analysis for Sandvik
It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr396. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Sandvik at kr465 per share, while the most bearish prices it at kr290. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Sandvik's growth to accelerate, with the forecast 16% annualised growth to the end of 2027 ranking favourably alongside historical growth of 6.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Sandvik is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to 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 estimates - from multiple Sandvik analysts - going out to 2028, and you can see them free on our platform here.
Even so, be aware that Sandvik is showing 1 warning sign in our investment analysis , you should know about...
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