NRC Group ASA Just Missed EPS By 50%: Here's What Analysts Think Will Happen Next
The analysts might have been a bit too bullish on NRC Group ASA (OB:NRC), given that the company fell short of expectations when it released its quarterly results last week. Results showed a clear earnings miss, with kr1.7b revenue coming in 2.4% lower than what the analystsexpected. Statutory earnings per share (EPS) of kr0.09 missed the mark badly, arriving some 50% below what was expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the three analysts covering NRC Group are now predicting revenues of kr6.85b in 2026. If met, this would reflect a satisfactory 7.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 375% to kr0.47. In the lead-up to this report, the analysts had been modelling revenues of kr6.91b and earnings per share (EPS) of kr0.54 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.
View our latest analysis for NRC Group
The consensus price target held steady at kr9.13, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 NRC Group, with the most bullish analyst valuing it at kr10.50 and the most bearish at kr8.40 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting NRC Group's growth to accelerate, with the forecast 16% annualised growth to the end of 2026 ranking favourably alongside historical growth of 1.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect NRC Group to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at kr9.13, 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. At Simply Wall St, we have a full range of analyst estimates for NRC Group going out to 2028, and you can see them free on our platform here..
It might also be worth considering whether NRC Group's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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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.