Systemair AB (publ) Just Beat EPS By 6.1%: Here's What Analysts Think Will Happen Next
Investors in Systemair AB (publ) (STO:SYSR) had a good week, as its shares rose 3.7% to close at kr87.90 following the release of its quarterly results. Systemair reported kr3.3b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr1.10 beat expectations, being 6.1% higher than what the analysts expected. 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 Systemair after the latest results.
Taking into account the latest results, the current consensus from Systemair's five analysts is for revenues of kr13.4b in 2027. This would reflect an okay 5.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 19% to kr4.57. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr13.3b and earnings per share (EPS) of kr4.54 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Systemair
There were no changes to revenue or earnings estimates or the price target of kr97.60, suggesting that the company has met expectations in its recent result. 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. The most optimistic Systemair analyst has a price target of kr100.00 per share, while the most pessimistic values it at kr90.00. 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. It's clear from the latest estimates that Systemair's rate of growth is expected to accelerate meaningfully, with the forecast 7.5% 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 7.5% annually. Systemair is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at kr97.60, 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. At Simply Wall St, we have a full range of analyst estimates for Systemair going out to 2029, and you can see them 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 Systemair , and understanding this should be part of your investment process.
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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.