Altra Fastigheter AB (publ) (STO:ALTRA) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates
It's been a good week for Altra Fastigheter AB (publ) (STO:ALTRA) shareholders, because the company has just released its latest second-quarter results, and the shares gained 3.8% to kr75.35. Altra Fastigheter reported in line with analyst predictions, delivering revenues of kr889m and statutory earnings per share of kr2.45, suggesting the business is executing well and in line with its plan. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Altra Fastigheter after the latest results.
Taking into account the latest results, Altra Fastigheter's five analysts currently expect revenues in 2026 to be kr3.49b, approximately in line with the last 12 months. Per-share earnings are expected to jump 30% to kr5.98. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr3.48b and earnings per share (EPS) of kr7.14 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.
See our latest analysis for Altra Fastigheter
The consensus price target held steady at kr86.80, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Altra Fastigheter at kr94.00 per share, while the most bearish prices it at kr80.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.3% by the end of 2026. This indicates a significant reduction from annual growth of 7.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.8% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Altra Fastigheter is expected to lag 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at kr86.80, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Altra Fastigheter analysts - going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 3 warning signs we've spotted with Altra Fastigheter (including 1 which is potentially serious) .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.