Kongsberg Automotive ASA (OB:KOA) Released Earnings Last Week And Analysts Lifted Their Price Target To kr2.37
It's been a good week for Kongsberg Automotive ASA (OB:KOA) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.8% to kr2.06. Revenues came in 3.5% below expectations, at €185m. Statutory earnings per share were relatively better off, with a per-share profit of €0.01 being roughly in line with analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, Kongsberg Automotive's two analysts are now forecasting revenues of €791.4m in 2027. This would be a decent 9.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 5.3% to €0.022. In the lead-up to this report, the analysts had been modelling revenues of €792.0m and earnings per share (EPS) of €0.02 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Kongsberg Automotive
The consensus price target rose 8.6% to kr2.37, suggesting that higher earnings estimates flow through to the stock's valuation as well.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kongsberg Automotive's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Kongsberg Automotive is forecast to grow faster in the future than it has in the past, with revenues expected to display 7.1% annualised growth until the end of 2027. If achieved, this would be a much better result than the 3.4% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 2.5% per year. So it looks like Kongsberg Automotive is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Kongsberg Automotive's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still 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 in mind, we wouldn't be too quick to come to a conclusion on Kongsberg Automotive. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Kongsberg Automotive going out as far as 2028, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Kongsberg Automotive that you should be aware of.
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