Results: Sydbank A/S Exceeded Expectations And The Consensus Has Updated Its Estimates

Sydbank A/S (CPH:SYDB) just released its latest quarterly results and things are looking bullish. The company beat expectations with revenues of kr.1.9b arriving 3.3% ahead of forecasts. Statutory earnings per share (EPS) were kr.15.50, 9.2% 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.

Check out our latest analysis for Sydbank

Taking into account the latest results, the current consensus, from the twin analysts covering Sydbank, is for revenues of kr.7.39b in 2024. This implies a small 4.1% reduction in Sydbank's revenue over the past 12 months. Statutory earnings per share are expected to sink 12% to kr.55.96 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr.7.28b and earnings per share (EPS) of kr.55.41 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.410, showing that the business is executing well and in line with expectations.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 5.4% by the end of 2024. This indicates a significant reduction from annual growth of 15% 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 Sydbank'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.

With that in mind, we wouldn't be too quick to come to a conclusion on Sydbank. Long-term earnings power is much more important than next year's profits. 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 Sydbank (1 makes us a bit uncomfortable!) 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.