Stock Analysis

DNB Bank ASA Just Beat EPS By 17%: Here's What Analysts Think Will Happen Next

OB:DNB
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As you might know, DNB Bank ASA (OB:DNB) just kicked off its latest quarterly results with some very strong numbers. It was a decent earnings report, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 10% higher than the analysts had forecast, at kr23b, while EPS of kr7.83 beat analyst models by 17%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for DNB Bank

earnings-and-revenue-growth
OB:DNB Earnings and Revenue Growth October 25th 2024

Following last week's earnings report, DNB Bank's 15 analysts are forecasting 2025 revenues to be kr82.9b, approximately in line with the last 12 months. Statutory earnings per share are forecast to drop 10% to kr24.77 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr81.4b and earnings per share (EPS) of kr24.43 in 2025. 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 kr230, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values DNB Bank at kr280 per share, while the most bearish prices it at kr207. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that DNB Bank's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.09% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.6% 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 DNB Bank.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that DNB Bank's revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr230, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for DNB Bank going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for DNB Bank (1 is a bit concerning!) that you need to take into consideration.

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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.