Ørsted A/S Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a sad week for Ørsted A/S (CPH:ORSTED), who've watched their investment drop 10% to kr.366 in the week since the company reported its quarterly result. Ørsted beat expectations by 8.2% with revenues of kr.16b. It also surprised on the earnings front, with an unexpected statutory profit of kr.12.00 per share a nice improvement on the losses that the analysts forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ørsted after the latest results.

View our latest analysis for Ørsted

After the latest results, the 19 analysts covering Ørsted are now predicting revenues of kr.92.5b in 2025. If met, this would reflect a sizeable 32% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 113% to kr.26.77. In the lead-up to this report, the analysts had been modelling revenues of kr.92.7b and earnings per share (EPS) of kr.27.59 in 2025. 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 minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at kr.469, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. Currently, the most bullish analyst values Ørsted at kr.540 per share, while the most bearish prices it at kr.390. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ørsted's past performance and to peers in the same industry. It's clear from the latest estimates that Ørsted's rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ørsted to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Ørsted. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

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 Ørsted going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 3 warning signs for Ørsted (2 are a bit concerning!) 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.