Ringkjøbing Landbobank A/S Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Ringkjøbing Landbobank A/S (CPH:RILBA) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat expectations with revenues of kr.1.0b arriving 3.7% ahead of forecasts. Statutory earnings per share (EPS) were kr.23.40, 9.9% ahead of estimates. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week's earnings report, Ringkjøbing Landbobank's dual analysts are forecasting 2025 revenues to be kr.4.12b, approximately in line with the last 12 months. Statutory earnings per share are expected to dip 4.0% to kr.91.50 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr.4.06b and earnings per share (EPS) of kr.89.12 in 2025. So the consensus seems to have become somewhat more optimistic on Ringkjøbing Landbobank's earnings potential following these results.

See our latest analysis for Ringkjøbing Landbobank

There's been no major changes to the consensus price target of kr.1,630, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 1.6% annualised decline to the end of 2025. That is a notable change from historical growth of 18% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.3% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Ringkjøbing Landbobank is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Ringkjøbing Landbobank's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at kr.1,630, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Ringkjøbing Landbobank going out as far as 2027, and you can see them free on our platform here.

It might also be worth considering whether Ringkjøbing Landbobank'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.