Earnings Release: Here's Why Analysts Cut Their Sydbank A/S (CPH:SYDB) Price Target To kr.415

Sydbank A/S (CPH:SYDB) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Sydbank reported kr.1.9b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr.14.30 beat expectations, being 4.6% 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Sydbank

Following the recent earnings report, the consensus from two analysts covering Sydbank is for revenues of kr.7.08b in 2025. This implies a small 7.2% decline in revenue compared to the last 12 months. Statutory earnings per share are forecast to plunge 21% to kr.50.64 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr.7.09b and earnings per share (EPS) of kr.50.56 in 2025. 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.

With no major changes to earnings forecasts, the consensus price target fell 5.7% to kr.415, suggesting that the analysts might have previously been hoping for an earnings upgrade.

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. We would highlight that revenue is expected to reverse, with a forecast 5.8% annualised decline to the end of 2025. That is a notable change from historical growth of 16% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 3.3% per year. The forecasts do look bearish for Sydbank, since they're expecting it to shrink faster than the 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. The consensus also reconfirmed their revenue estimates, suggesting that it is performing in line with expectations. Plus, our data suggests that Sydbank is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Sydbank 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 Sydbank you should be aware of, and 1 of them makes us a bit uncomfortable.

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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.