Results: Spar Nord Bank A/S Beat Earnings Expectations And Analysts Now Have New Forecasts

Last week, you might have seen that Spar Nord Bank A/S (CPH:SPNO) released its full-year result to the market. The early response was not positive, with shares down 5.4% to kr.114 in the past week. Revenues were kr.5.7b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of kr.19.90 were also better than expected, beating analyst predictions by 15%. The analyst 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

See our latest analysis for Spar Nord Bank

Taking into account the latest results, Spar Nord Bank's one analyst currently expect revenues in 2024 to be kr.5.71b, approximately in line with the last 12 months. Statutory earnings per share are expected to decrease 8.4% to kr.18.50 in the same period. Before this earnings report, the analyst had been forecasting revenues of kr.5.19b and earnings per share (EPS) of kr.15.02 in 2024. There has definitely been an improvement in perception after these results, with the analyst noticeably increasing both their earnings and revenue estimates.

Althoughthe analyst has upgraded their earnings estimates, there was no change to the consensus price target of kr.120, suggesting that the forecast performance does not have a long term impact on the company's valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Spar Nord Bank's revenue growth is expected to slow, with the forecast 0.3% annualised growth rate until the end of 2024 being well below the historical 13% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 0.7% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Spar Nord Bank.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Spar Nord Bank's earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than 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.

It is also worth noting that we have found 2 warning signs for Spar Nord Bank (1 can't be ignored!) that you need to take into consideration.

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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.