“Bjorn Borg and John McEnroe aren’t covering that” – Sam Querrey reveals when he thought he would win US Open

Björn Borg AB (publ) (STO:BORG) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. Björn Borg delivered a significant beat with revenue hitting kr213m and statutory EPS reaching kr0.26, both beating estimates by more than 10%. 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. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Björn Borg after the latest results.

Taking into account the latest results, the most recent consensus for Björn Borg from dual analysts is for revenues of kr1.02b in 2024. If met, it would imply a notable 8.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 14% to kr3.39. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr970.9m and earnings per share (EPS) of kr3.16 in 2024. It looks like there’s been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we’re not surprised to see that the analysts have lifted their price target 6.2% to kr68.50per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Björn Borg’s past performance and to peers in the same industry. The analysts are definitely expecting Björn Borg’s growth to accelerate, with the forecast 18% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Björn Borg to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Björn Borg following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected 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 said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have analyst estimates for Björn Borg going out as far as 2026, 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 Björn Borg you should know about.