It's been a good week for ASSA ABLOY AB (publ) (STO:ASSA B) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.9% to kr387. Results were roughly in line with estimates, with revenues of kr41b and statutory earnings per share of kr4.24. 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. 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 most recent consensus for ASSA ABLOY from 20 analysts is for revenues of kr173.1b in 2027. If met, it would imply a solid 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 18% to kr18.05. Before this earnings report, the analysts had been forecasting revenues of kr171.9b and earnings per share (EPS) of kr17.82 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for ASSA ABLOY
The analysts reconfirmed their price target of kr414, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on ASSA ABLOY, with the most bullish analyst valuing it at kr500 and the most bearish at kr345 per share. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 9.8% growth on an annualised basis. That is in line with its 9.5% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 8.2% per year. It's clear that while ASSA ABLOY's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.
With that in mind, we wouldn't be too quick to come to a conclusion on ASSA ABLOY. Long-term earnings power is much more important than next year's profits. We have forecasts for ASSA ABLOY going out to 2028, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with ASSA ABLOY , and understanding it should be part of your investment process.
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