The Aasen Sparebank (OB:AASB) Analyst Just Cut Their Revenue Forecast By 12%

One thing we could say about the covering analyst on Aasen Sparebank (OB:AASB) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the current consensus from Aasen Sparebank's single analyst is for revenues of kr135m in 2023 which - if met - would reflect a decent 8.7% increase on its sales over the past 12 months. Before the latest update, the analyst was foreseeing kr153m of revenue in 2023. The consensus view seems to have become more pessimistic on Aasen Sparebank, noting the measurable cut to revenue estimates in this update.

See our latest analysis for Aasen Sparebank

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analyst is definitely expecting Aasen Sparebank's growth to accelerate, with the forecast 12% annualised growth to the end of 2023 ranking favourably alongside historical growth of 5.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Aasen Sparebank to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their revenue estimates for this year. The analyst also expects revenues to grow faster than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Aasen Sparebank going forwards.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Aasen Sparebank's business, like major dilution from new stock issuance in the past year. Learn more, and discover the 2 other warning signs we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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