It's been a good week for Saab AB (publ) (STO:SAAB B) shareholders, because the company has just released its latest third-quarter results, and the shares gained 2.8% to kr657. Results overall were respectable, with statutory earnings of kr2.57 per share roughly in line with what the analysts had forecast. Revenues of kr21b came in 2.7% ahead of analyst predictions. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus from Saab's 13 analysts is for revenues of kr119.7b in 2027. This would reflect a substantial 29% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 38% to kr19.22. Before this earnings report, the analysts had been forecasting revenues of kr119.1b and earnings per share (EPS) of kr19.04 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 Saab
It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr648. 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. There are some variant perceptions on Saab, with the most bullish analyst valuing it at kr760 and the most bearish at kr330 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 22% growth on an annualised basis. That is in line with its 19% 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 16% per year. So although Saab is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr648, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Saab. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Saab going out to 2028, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Saab .
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