The Aker Solutions ASA (OB:AKSO) Second-Quarter Results Are Out And Analysts Have Published New Forecasts
It's been a mediocre week for Aker Solutions ASA (OB:AKSO) shareholders, with the stock dropping 12% to kr40.62 in the week since its latest second-quarter results. Results look mixed - while revenue fell marginally short of analyst estimates at kr13b, statutory earnings beat expectations 2.5%, with Aker Solutions reporting profits of kr1.34 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus, from the nine analysts covering Aker Solutions, is for revenues of kr53.1b in 2026. This implies an uneasy 10% reduction in Aker Solutions' revenue over the past 12 months. Statutory earnings per share are forecast to shrink 7.5% to kr6.16 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr51.8b and earnings per share (EPS) of kr5.83 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
View our latest analysis for Aker Solutions
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of kr45.00, suggesting that the forecast performance does not have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Aker Solutions analyst has a price target of kr67.00 per share, while the most pessimistic values it at kr35.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 19% by the end of 2026. This indicates a significant reduction from annual growth of 17% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 0.9% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Aker Solutions is expected to lag 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 Aker Solutions following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at kr45.00, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Aker Solutions analysts - going out to 2028, and you can see them free on our platform here.
Even so, be aware that Aker Solutions is showing 3 warning signs in our investment analysis , and 1 of those can't be ignored...
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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.