Engineering giant Sandvik's market capitalization has once again surpassed SEK 500 billion ahead of its upcoming earnings release, as expectations mount. The question remains whether a customary earnings beat will be enough this time around, Dagens industri writes in an analysis.

It is noted that the company is seeing robust demand within the mining segment and that tungsten prices have risen, driven by Chinese export restrictions and increased demand from the defense industry.

"The trend in tungsten has driven many of the analyst community's estimate hikes recently. This is because Sandvik is expected to offset costs through price increases, which benefits the company's margins," the paper writes.

For investors, the challenge lies in assessing the sustainability of these positive effects, as well as the extent to which short-term results have been bolstered by pre-buying ahead of anticipated price hikes, according to Di.

"It is clear that expectations are sky-high when Sandvik releases its figures in a week. It may be that more than a positive earnings surprise is required for Sandvik to rally on reporting day," the paper concludes.