The Nordea Bank Abp (HEL:NDA FI) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

Investors in Nordea Bank Abp (HEL:NDA FI) had a good week, as its shares rose 6.9% to close at €11.08 following the release of its third-quarter results. Nordea Bank Abp reported €3.0b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €0.36 beat expectations, being 4.7% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Nordea Bank Abp after the latest results.

See our latest analysis for Nordea Bank Abp

Following last week's earnings report, Nordea Bank Abp's 15 analysts are forecasting 2025 revenues to be €11.9b, approximately in line with the last 12 months. Statutory earnings per share are forecast to shrink 2.1% to €1.40 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €11.9b and earnings per share (EPS) of €1.36 in 2025. So the consensus seems to have become somewhat more optimistic on Nordea Bank Abp's earnings potential following these results.

The consensus price target was unchanged at €13.14, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Nordea Bank Abp, with the most bullish analyst valuing it at €15.10 and the most bearish at €11.10 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nordea Bank Abp's past performance and to peers in the same industry. We would highlight that Nordea Bank Abp's revenue growth is expected to slow, with the forecast 0.3% annualised growth rate until the end of 2025 being well below the historical 10% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Nordea Bank Abp.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Nordea Bank Abp's earnings potential next year. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Nordea Bank Abp analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Nordea Bank Abp (1 makes us a bit uncomfortable) 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.