Earnings Update: DNB Bank ASA (OB:DNB) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

Last week saw the newest first-quarter earnings release from DNB Bank ASA (OB:DNB), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of kr20b were in line with what the analysts predicted, DNB Bank surprised by delivering a statutory profit of kr6.48 per share, modestly greater than 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for DNB Bank

After the latest results, the 13 analysts covering DNB Bank are now predicting revenues of kr81.5b in 2024. If met, this would reflect an okay 3.8% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be kr25.13, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of kr82.8b and earnings per share (EPS) of kr24.70 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr210. 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 kr240 per share, while the most bearish prices it at kr186. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. 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 2024 expected to display 5.1% growth on an annualised basis. This is compared to a historical growth rate of 9.9% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.4% per year. So it's pretty clear that, while DNB Bank's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr210, 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. We have estimates - from multiple DNB Bank analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that DNB Bank is showing 2 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

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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.