Earnings Miss: NTG Nordic Transport Group A/S Missed EPS By 28% And Analysts Are Revising Their Forecasts

NTG Nordic Transport Group A/S (CPH:NTG) 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. Statutory earnings per share fell badly short of expectations, coming in at kr.2.32, some 28% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at kr.2.9b. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for NTG Nordic Transport Group from four analysts is for revenues of kr.12.1b in 2026. If met, it would imply a notable 9.6% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 64% to kr.16.04. Before this earnings report, the analysts had been forecasting revenues of kr.12.1b and earnings per share (EPS) of kr.16.78 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

See our latest analysis for NTG Nordic Transport Group

The consensus price target held steady at kr.303, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic NTG Nordic Transport Group analyst has a price target of kr.345 per share, while the most pessimistic values it at kr.216. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await NTG Nordic Transport Group shareholders.

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. It's pretty clear that there is an expectation that NTG Nordic Transport Group's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.6% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 0.2% per year. So it's pretty clear that, while NTG Nordic Transport Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

With that in mind, we wouldn't be too quick to come to a conclusion on NTG Nordic Transport Group. Long-term earnings power is much more important than next year's profits. We have forecasts for NTG Nordic Transport Group going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for NTG Nordic Transport Group (1 is a bit unpleasant!) 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.