Tomra Systems ASA Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
As you might know, Tomra Systems ASA (OB:TOM) just kicked off its latest third-quarter results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 5.2% to hit €366m. Tomra Systems reported statutory earnings per share (EPS) €0.08, which was a notable 19% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the 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 statutory forecasts to see whether the analysts have changed their mind on Tomra Systems after the latest results.
Taking into account the latest results, the current consensus from Tomra Systems' eight analysts is for revenues of €1.71b in 2027. This would reflect a notable 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 73% to €0.54. In the lead-up to this report, the analysts had been modelling revenues of €1.71b and earnings per share (EPS) of €0.54 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for Tomra Systems
There were no changes to revenue or earnings estimates or the price target of kr123, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Tomra Systems analyst has a price target of kr168 per share, while the most pessimistic values it at kr74.69. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
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. It's clear from the latest estimates that Tomra Systems' rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 5.9% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 11% per year. Tomra Systems is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Tomra Systems going out to 2028, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for Tomra Systems that you need to take into consideration.
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