It's been a good week for Skandinaviska Enskilda Banken AB (publ.) (STO:SEB A) shareholders, because the company has just released its latest full-year results, and the shares gained 3.0% to kr95.24. The result was positive overall - although revenues of kr48b were in line with what analysts predicted, Skandinaviska Enskilda Banken AB (publ.) surprised by delivering a statutory profit of kr9.28 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what analysts are expecting for next year.
After the latest results, the 13 analysts covering Skandinaviska Enskilda Banken AB (publ.) are now predicting revenues of kr50.6b in 2020. If met, this would reflect an okay 5.7% improvement in sales compared to the last 12 months. Statutory per share are forecast to be kr9.29, approximately in line with the last 12 months. In the lead-up to this report, analysts had been modelling revenues of kr50.0b and earnings per share (EPS) of kr9.15 in 2020. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of kr97.71, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on Skandinaviska Enskilda Banken AB (publ.), with the most bullish analyst valuing it at kr113 and the most bearish at kr80.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Skandinaviska Enskilda Banken AB (publ.) shareholders.
It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the Skandinaviska Enskilda Banken AB (publ.)'s past performance and to peers in the same market. Analysts are definitely expecting Skandinaviska Enskilda Banken AB (publ.)'s growth to accelerate, with the forecast 5.7% growth ranking favourably alongside historical growth of 0.4% per annum over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 2.4% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Skandinaviska Enskilda Banken AB (publ.) is expected to grow much faster than its market.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that Skandinaviska Enskilda Banken AB (publ.)'s revenues are expected to grow faster than the wider market. 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Skandinaviska Enskilda Banken AB (publ.) going out to 2022, and you can see them free on our platform here..
It might also be worth considering whether Skandinaviska Enskilda Banken AB (publ.)'s debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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