Spar Nord Bank A/S (CPH:SPNO) Analysts Are Pretty Bullish On The Stock After Recent Results

Spar Nord Bank A/S (CPH:SPNO) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The results were positive, with revenue coming in at kr.1.5b, beating analyst expectations by 2.1%. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

View our latest analysis for Spar Nord Bank

Taking into account the latest results, the solitary analyst covering Spar Nord Bank provided consensus estimates of kr.5.62b revenue in 2024, which would reflect a discernible 4.7% decline over the past 12 months. Statutory earnings per share are expected to decline 14% to kr.18.27 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr.5.71b and earnings per share (EPS) of kr.18.50 in 2024. The consensus analyst doesn'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 consensus price target rose 8.3% to kr.130despite there being no meaningful change to earnings estimates. It could be that the analystare reflecting the predictability of Spar Nord Bank's earnings by assigning a price premium.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Spar Nord Bank's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 6.3% annualised decline to the end of 2024. That is a notable change from historical growth of 14% 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 0.7% annually for the foreseeable future. So it's pretty clear that Spar Nord Bank's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analyst reconfirming that the business is performing in line with their previous earnings per share estimates. The consensus also reconfirmed their revenue estimates, suggesting that it is performing in line with expectations. Plus, our data suggests that Spar Nord Bank is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Spar Nord Bank. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Spar Nord Bank going out as far as 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Spar Nord Bank you should be aware of, and 1 of them is potentially serious.

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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.