Betsson AB (publ) Just Missed EPS By 7.7%: Here's What Analysts Think Will Happen Next
Betsson AB (publ) (STO:BETS B) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Betsson beat revenue expectations by 3.7%, at €309m. Statutory earnings per share (EPS) came in at €0.21, some 7.7% short of analyst estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Betsson after the latest results.
Taking into account the latest results, Betsson's three analysts currently expect revenues in 2026 to be €1.21b, approximately in line with the last 12 months. Statutory earnings per share are expected to fall 12% to €0.87 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.19b and earnings per share (EPS) of €0.88 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.
See our latest analysis for Betsson
It may not be a surprise to see thatthe analysts have reconfirmed their price target of kr95.00, implying that the uplift in revenue is not expected to greatly contribute to Betsson's valuation in the near term. 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 Betsson at kr100.00 per share, while the most bearish prices it at kr90.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Betsson's revenue growth is expected to slow, with the forecast 2.8% annualised growth rate until the end of 2026 being well below the historical 14% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.9% per year. Factoring in the forecast slowdown in growth, it seems obvious that Betsson is also expected to grow slower than other industry participants.
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. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to 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. We have estimates - from multiple Betsson analysts - going out to 2028, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for Betsson you should know about.
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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.