NTG Nordic Transport Group A/S Just Missed EPS By 10%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that NTG Nordic Transport Group A/S (CPH:NTG) filed its first-quarter result this time last week. The early response was not positive, with shares down 4.6% to kr.280 in the past week. Statutory earnings per share of kr.3.21 unfortunately missed expectations by 10%, although it was encouraging to see revenues of kr.2.2b exceed expectations by 5.4%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for NTG Nordic Transport Group

Taking into account the latest results, NTG Nordic Transport Group's five analysts currently expect revenues in 2024 to be kr.8.53b, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 5.4% to kr.16.55 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr.8.42b and earnings per share (EPS) of kr.16.37 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.362, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on NTG Nordic Transport Group, with the most bullish analyst valuing it at kr.380 and the most bearish at kr.333 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting NTG Nordic Transport Group is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that NTG Nordic Transport Group's revenue growth is expected to slow, with the forecast 1.6% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 2.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that NTG Nordic Transport Group is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for NTG Nordic Transport Group going out to 2026, and you can see them free on our platform here..

You can also view our analysis of NTG Nordic Transport Group's balance sheet, and whether we think NTG Nordic Transport Group is carrying too much debt, for free on our platform here.

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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.