Ringkjøbing Landbobank A/S Just Recorded A 5.9% EPS Beat: Here's What Analysts Are Forecasting Next

Last week, you might have seen that Ringkjøbing Landbobank A/S (CPH:RILBA) released its quarterly result to the market. The early response was not positive, with shares down 2.6% to kr.1,106 in the past week. Ringkjøbing Landbobank reported kr.1.0b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr.22.00 beat expectations, being 5.9% higher than what the analysts expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ringkjøbing Landbobank after the latest results.

Check out our latest analysis for Ringkjøbing Landbobank

Taking into account the latest results, Ringkjøbing Landbobank's twin analysts currently expect revenues in 2024 to be kr.4.07b, approximately in line with the last 12 months. Statutory earnings per share are expected to dip 2.6% to kr.88.41 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr.4.07b and earnings per share (EPS) of kr.88.65 in 2024. 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.

The analysts reconfirmed their price target of kr.1,295, showing that the business is executing well and in line with expectations.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.4% by the end of 2024. This indicates a significant reduction from annual growth of 17% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 1.5% annually for the foreseeable future. So it's pretty clear that Ringkjøbing Landbobank's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also made no changes to their revenue estimates, implying the business is not expected to experience any major impacts to the current trajectory in the near term, even though it is expected to trail 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 least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Ringkjøbing Landbobank that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.