Analyst Estimates: Here’s What Brokers Think Of Bredband2 i Skandinavien AB (publ) (STO:BRE2) After Its Yearly Report

Feb 10, 2024

The yearly results for Bredband2 i Skandinavien AB (publ) (STO:BRE2) were released last week, making it a good time to revisit its performance. Bredband2 i Skandinavien reported in line with analyst predictions, delivering revenues of kr1.6b and statutory earnings per share of kr0.089, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Bredband2 i Skandinavien

OM:BRE2 Earnings and Revenue Growth February 10th 2024

Taking into account the latest results, the current consensus from Bredband2 i Skandinavien’s dual analysts is for revenues of kr1.69b in 2024. This would reflect a satisfactory 6.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 18% to kr0.10. In the lead-up to this report, the analysts had been modelling revenues of kr1.69b and earnings per share (EPS) of kr0.11 in 2024. So it looks like there’s been a small decline in overall sentiment after the recent results – there’s been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at kr2.20, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

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 would highlight that Bredband2 i Skandinavien’s revenue growth is expected to slow, with the forecast 6.8% annualised growth rate until the end of 2024 being well below the historical 23% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.5% per year. Even after the forecast slowdown in growth, it seems obvious that Bredband2 i Skandinavien is also expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Bredband2 i Skandinavien. 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 kr2.20, 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 Bredband2 i Skandinavien going out as far as 2026, and you can see them free on our platform here.

However, before you get too enthused, we’ve discovered 1 warning sign for Bredband2 i Skandinavien that you should be aware of.

Valuation is complex, but we’re helping make it simple.

Find out whether Bredband2 i Skandinavien is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.

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