NTG Nordic Transport Group A/S (CPH:NTG) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

It's been a good week for NTG Nordic Transport Group A/S (CPH:NTG) shareholders, because the company has just released its latest second-quarter results, and the shares gained 2.3% to kr.199. It was an okay report, and revenues came in at kr.2.9b, approximately in line with analyst estimates leading up to the results announcement. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, NTG Nordic Transport Group's five analysts are now forecasting revenues of kr.11.4b in 2025. This would be a notable 9.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 11% to kr.10.54. Before this earnings report, the analysts had been forecasting revenues of kr.11.4b and earnings per share (EPS) of kr.14.65 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

See our latest analysis for NTG Nordic Transport Group

The consensus price target held steady at kr.334, 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.400 per share, while the most pessimistic values it at kr.234. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. The analysts are definitely expecting NTG Nordic Transport Group's growth to accelerate, with the forecast 19% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that NTG Nordic Transport Group is expected to grow much faster than its industry.

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.

However, before you get too enthused, we've discovered 2 warning signs for NTG Nordic Transport Group that you should be aware of.

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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.