Yahoo Finance Sbanken ASA Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year
As you might know, Sbanken ASA (OB:SBANK) just kicked off its latest quarterly results with some very strong numbers. It was a decent earnings report, with revenues and earnings per share (EPS) both performing well. Revenues were 11% higher than analysts had forecast, at kr496m, while EPS of kr1.96 beat analyst models by 13%. Earnings are an important time for investors, as they can track a company's performance, look at what top 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 forecasts to see whether analysts have changed their mind on Sbanken after the latest results.
View our latest analysis for Sbanken
Taking into account the latest results, the latest consensus from Sbanken's five analysts is for revenues of kr1.95b in 2020, which would reflect a huge 21% improvement in sales compared to the last 12 months. Earnings per share are expected to step up 19% to kr7.65. Yet prior to the latest earnings, analysts had been forecasting revenues of kr1.93b and earnings per share (EPS) of kr7.62 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.
Analysts reconfirmed their price target of kr78.60, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Sbanken, with the most bullish analyst valuing it at kr90.00 and the most bearish at kr70.00 per share. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. It's clear from the latest estimates that Sbanken's rate of growth is expected to accelerate meaningfully, with forecast 21% revenue growth noticeably faster than its historical growth of 11%p.a. over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 3.0% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sbanken 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. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business 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. We have forecasts for Sbanken going out to 2021, and you can see them free on our platform here.
You can also view our analysis of Sbanken's balance sheet, and whether we think Sbanken is carrying too much debt, for free on our platform here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
