Here's What Analysts Are Forecasting For Solar A/S (CPH:SOLAR B) After Its Second-Quarter Results
It's been a good week for Solar A/S (CPH:SOLAR B) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.0% to kr.222. The business exceeded expectations with revenue of kr.3.4b coming in 4.7% ahead of forecasts. Statutory losses were kr.3.40 a share, in line with what the analysts predicted. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Solar's two analysts is for revenues of kr.13.1b in 2026. This reflects a modest 3.6% improvement in revenue compared to the last 12 months. The company is forecast to report a statutory loss of kr.2.98 in 2026, a sharp decline from a profit over the last year. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr.13.0b and earnings per share (EPS) of kr.3.64 in 2026. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.
See our latest analysis for Solar
The consensus price target held steady at kr.215, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation.
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. For example, we noticed that Solar's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 7.3% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 0.9% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 5.4% per year. Not only are Solar's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts are expecting Solar to become unprofitable next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr.215, 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. We have analyst estimates for Solar going out as far as 2028, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 3 warning signs for Solar (of which 1 shouldn't be ignored!) 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.