Investors in Elanders AB (publ) (STO:ELAN B) had a good week, as its shares rose 4.5% to close at kr52.10 following the release of its third-quarter results. Revenues of kr3.1b beat expectations by 3.0%. Unfortunately statutory earnings per share (EPS) fell well short of the mark, turning in a loss of kr0.20 compared to previous analyst expectations of a profit. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for Elanders from twin analysts is for revenues of kr12.6b in 2027. If met, it would imply a credible 6.5% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 319% to kr9.01. Before this earnings report, the analysts had been forecasting revenues of kr12.4b and earnings per share (EPS) of kr9.31 in 2027. 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 minor downgrade to their earnings per share forecasts.
View our latest analysis for Elanders
It might be a surprise to learn that the consensus price target was broadly unchanged at kr89.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.
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. One thing stands out from these estimates, which is that Elanders is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.2% annualised growth until the end of 2027. If achieved, this would be a much better result than the 1.2% 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 1.2% annually. Not only are Elanders' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
Even so, be aware that Elanders is showing 2 warning signs in our investment analysis , and 1 of those is significant...
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