One Analyst's Revenue Estimates For Melhus Sparebank (OB:MELG) Are Surging Higher

Shareholders in Melhus Sparebank (OB:MELG) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following this upgrade, Melhus Sparebank's solo analyst are forecasting 2021 revenues to be kr212m, approximately in line with the last 12 months. Statutory earnings per share are presumed to accumulate 2.7% to kr12.95. Prior to this update, the analyst had been forecasting revenues of kr162m and earnings per share (EPS) of kr12.98 in 2021. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

See our latest analysis for Melhus Sparebank

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Melhus Sparebank's past performance and to peers in the same industry. We would also point out that the forecast 2.2% annualised revenue decline to the end of 2021 is better than the historical trend, which saw revenues shrink 3.3% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 9.6% per year. So it's pretty clear that, while it does have declining revenues, the analyst also expect Melhus Sparebank to suffer worse than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with the analyst holding earnings per share steady, in line with previous estimates. Pleasantly, the analyst also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Melhus Sparebank.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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This article by Simply Wall St is general in nature. 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.
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