Per Aarsleff Holding A/S (CPH:PAAL B) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?
Last week, you might have seen that Per Aarsleff Holding A/S (CPH:PAAL B) released its third-quarter result to the market. The early response was not positive, with shares down 8.0% to kr.709 in the past week. Per Aarsleff Holding beat revenue expectations by 2.8%, at kr.6.7b. Statutory earnings per share (EPS) came in at kr.13.33, some 3.4% short of analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the three analysts covering Per Aarsleff Holding are now predicting revenues of kr.29.0b in 2027. If met, this would reflect a decent 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 31% to kr.59.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr.29.2b and earnings per share (EPS) of kr.60.43 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for Per Aarsleff Holding
It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr.997. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Per Aarsleff Holding analyst has a price target of kr.1,040 per share, while the most pessimistic values it at kr.950. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Per Aarsleff Holding's growth to accelerate, with the forecast 13% annualised growth to the end of 2027 ranking favourably alongside historical growth of 9.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.4% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Per Aarsleff Holding to grow faster than the wider industry.
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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at kr.997, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Per Aarsleff Holding. Long-term earnings power is much more important than next year's profits. We have forecasts for Per Aarsleff Holding going out to 2028, and you can see them free on our platform here.
It might also be worth considering whether Per Aarsleff Holding's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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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.