Svenska Handelsbanken AB (publ) (STO:SHB A) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year
Last week, you might have seen that Svenska Handelsbanken AB (publ) (STO:SHB A) released its third-quarter result to the market. The early response was not positive, with shares down 2.6% to kr150 in the past week. Svenska Handelsbanken reported in line with analyst predictions, delivering revenues of kr14b and statutory earnings per share of kr2.87, suggesting the business is executing well and in line with its plan. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from Svenska Handelsbanken's 14 analysts is for revenues of kr59.1b in 2027. This reflects a modest 7.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 3.2% to kr12.26. Before this earnings report, the analysts had been forecasting revenues of kr59.2b and earnings per share (EPS) of kr12.32 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.
See our latest analysis for Svenska Handelsbanken
The analysts reconfirmed their price target of kr143, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Svenska Handelsbanken at kr176 per share, while the most bearish prices it at kr127. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Svenska Handelsbanken'shistorical trends, as the 6.0% annualised revenue growth to the end of 2027 is roughly in line with the 5.5% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 5.9% per year. So although Svenska Handelsbanken is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.
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 estimates - from multiple Svenska Handelsbanken 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 1 warning sign for Svenska Handelsbanken you should know about.
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