Last week, you might have seen that Absolent Air Care Group AB (publ) (STO:ABSO) released its quarterly result to the market. The early response was not positive, with shares down 2.2% to kr179 in the past week. It was a credible result overall, with revenues of kr311m and statutory earnings per share of kr6.20 both in line with analyst estimates, showing that Absolent Air Care Group is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Absolent Air Care Group after the latest results.
Following the latest results, Absolent Air Care Group's two analysts are now forecasting revenues of kr1.51b in 2027. This would be a decent 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 73% to kr14.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr1.51b and earnings per share (EPS) of kr14.70 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 small dip in their earnings per share forecasts.
See our latest analysis for Absolent Air Care Group
The consensus price target held steady at kr265, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.
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 Absolent Air Care Group's growth to accelerate, with the forecast 12% annualised growth to the end of 2027 ranking favourably alongside historical growth of 2.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Absolent Air Care Group 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. The consensus price target held steady at kr265, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
You still need to take note of risks, for example - Absolent Air Care Group has 1 warning sign we think you should be aware of.
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