BTS Group AB (publ) (STO:BTS B) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. The company beat forecasts, with revenue of kr716m, some 7.8% above estimates, and statutory earnings per share (EPS) coming in at kr2.12, 83% ahead of expectations. 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 BTS Group's dual analysts is for revenues of kr3.24b in 2027. This would reflect a notable 16% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 104% to kr12.90. In the lead-up to this report, the analysts had been modelling revenues of kr3.10b and earnings per share (EPS) of kr11.95 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
Check out our latest analysis for BTS Group
With these upgrades, we're not surprised to see that the analysts have lifted their price target 12% to kr243per share.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the BTS Group's past performance and to peers in the same industry. It's clear from the latest estimates that BTS Group's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 6.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that BTS Group is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around BTS Group's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on BTS Group. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2028, which can be seen for 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 BTS Group , and understanding it should be part of your investment process.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.