AF Gruppen ASA Just Recorded A 23% EPS Beat: Here's What Analysts Are Forecasting Next
A week ago, AF Gruppen ASA (OB:AFG) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of kr9.1b, some 4.3% above estimates, and statutory earnings per share (EPS) coming in at kr2.99, 23% ahead of expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the twin analysts covering AF Gruppen are now predicting revenues of kr35.9b in 2026. If met, this would reflect a modest 5.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 10% to kr11.87. Before this earnings report, the analysts had been forecasting revenues of kr35.4b and earnings per share (EPS) of kr11.21 in 2026. So the consensus seems to have become somewhat more optimistic on AF Gruppen's earnings potential following these results.
See our latest analysis for AF Gruppen
The consensus price target was unchanged at kr193, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.
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. It's clear from the latest estimates that AF Gruppen's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that AF Gruppen is expected to grow much faster than its 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 AF Gruppen following these results. 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 kr193, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for AF Gruppen going out as far as 2028, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for AF Gruppen that you should be aware of.
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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.