Arjo AB (publ) Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
Investors in Arjo AB (publ) (STO:ARJO B) had a good week, as its shares rose 6.0% to close at kr27.40 following the release of its quarterly results. Revenues were kr2.8b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of kr0.46 were also better than expected, beating analyst predictions by 11%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the five analysts covering Arjo are now predicting revenues of kr11.2b in 2026. If met, this would reflect a credible 2.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 32% to kr1.86. In the lead-up to this report, the analysts had been modelling revenues of kr11.1b and earnings per share (EPS) of kr1.80 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
View our latest analysis for Arjo
The consensus price target was unchanged at kr30.00, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Arjo analyst has a price target of kr33.00 per share, while the most pessimistic values it at kr27.00. This is a very narrow spread of estimates, implying either that Arjo is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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 period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 4.9% growth on an annualised basis. That is in line with its 4.7% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 17% per year. So it's pretty clear that Arjo is expected to grow slower than similar companies in the same industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Arjo 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. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Arjo going out to 2028, and you can see them free on our platform here..
Before you take the next step you should know about the 2 warning signs for Arjo that we have uncovered.
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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.