Results: SpareBank 1 SMN Exceeded Expectations And The Consensus Has Updated Its Estimates

As you might know, SpareBank 1 SMN (OB:MING) just kicked off its latest quarterly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 8.0% to hit kr2.3b. SpareBank 1 SMN reported statutory earnings per share (EPS) kr4.99, which was a notable 11% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus, from the three analysts covering SpareBank 1 SMN, is for revenues of kr8.86b in 2026. This implies a measurable 3.9% reduction in SpareBank 1 SMN's revenue over the past 12 months. Statutory earnings per share are forecast to descend 17% to kr18.22 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr8.89b and earnings per share (EPS) of kr18.12 in 2026. 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.

Check out our latest analysis for SpareBank 1 SMN

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr215. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic SpareBank 1 SMN analyst has a price target of kr225 per share, while the most pessimistic values it at kr210. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SpareBank 1 SMN's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.2% by the end of 2026. This indicates a significant reduction from annual growth of 13% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - SpareBank 1 SMN is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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 in mind, we wouldn't be too quick to come to a conclusion on SpareBank 1 SMN. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for SpareBank 1 SMN going out to 2027, and you can see them free on our platform here..

You can also see whether SpareBank 1 SMN is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.