Earnings Miss: SpareBank 1 Nord-Norge Missed EPS By 5.2% And Analysts Are Revising Their Forecasts
The quarterly results for SpareBank 1 Nord-Norge (OB:NONG) were released last week, making it a good time to revisit its performance. Revenues of kr1.6b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr3.57, missing estimates by 5.2%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus from SpareBank 1 Nord-Norge's four analysts is for revenues of kr6.81b in 2027. This would reflect a solid 12% increase on its revenue over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of kr6.82b and earnings per share (EPS) of kr15.79 in 2027. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.
See our latest analysis for SpareBank 1 Nord-Norge
We'd also point out that thatthe analysts have made no major changes to their price target of kr186. 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. Currently, the most bullish analyst values SpareBank 1 Nord-Norge at kr193 per share, while the most bearish prices it at kr180. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of SpareBank 1 Nord-Norge'shistorical trends, as the 9.4% annualised revenue growth to the end of 2027 is roughly in line with the 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.6% annually. So it's pretty clear that SpareBank 1 Nord-Norge is forecast to grow substantially faster than its industry.
The Bottom Line
The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. 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 kr186, with the latest estimates not enough to have an impact on their price targets.
We have estimates for SpareBank 1 Nord-Norge from its four analysts out to 2028, and you can see them free on our platform here.
It might also be worth considering whether SpareBank 1 Nord-Norge's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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