Investors in Swedish Logistic Property AB (STO:SLP B) had a good week, as its shares rose 2.1% to close at kr31.80 following the release of its yearly results. It looks like the results were a bit of a negative overall. While revenues of kr585m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.9% to hit kr1.55 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Swedish Logistic Property
After the latest results, the three analysts covering Swedish Logistic Property are now predicting revenues of kr690.2m in 2024. If met, this would reflect a solid 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 6.2% to kr1.44. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr661.9m and earnings per share (EPS) of kr1.75 in 2024. So it’s pretty clear the analysts have mixed opinions on Swedish Logistic Property after the latest results; even though they upped their revenue numbers, it came at the cost of a real cut to per-share earnings expectations.
The analysts also upgraded Swedish Logistic Property’s price target 6.8% to kr36.67, implying that the higher revenue expected to generate enough value to offset the forecast decline in earnings. 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. The most optimistic Swedish Logistic Property analyst has a price target of kr39.00 per share, while the most pessimistic values it at kr35.00. The narrow spread of estimates could suggest that the business’ future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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. We would highlight that Swedish Logistic Property’s revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2024 being well below the historical 47% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.9% annually. So it’s pretty clear that, while Swedish Logistic Property’s revenue growth is expected to slow, it’s still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn’t be too quick to come to a conclusion on Swedish Logistic Property. Long-term earnings power is much more important than next year’s profits. We have estimates – from multiple Swedish Logistic Property analysts – going out to 2026, and you can see them free on our platform here.
However, before you get too enthused, we’ve discovered 3 warning signs for Swedish Logistic Property (1 is concerning!) 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.