Analysts Have Made A Financial Statement On Sparebanken Møre's (OB:MORG) Yearly Report

A week ago, Sparebanken Møre (OB:MORG) came out with a strong set of annual numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of kr2.2b arriving 3.1% ahead of forecasts. Statutory earnings per share (EPS) were kr10.12, 2.0% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sparebanken Møre after the latest results.

Check out our latest analysis for Sparebanken Møre

Taking into account the latest results, the most recent consensus for Sparebanken Møre from three analysts is for revenues of kr2.37b in 2024. If met, it would imply a modest 5.5% increase on its revenue over the past 12 months. Statutory earnings per share are expected to decrease 5.3% to kr9.61 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr2.30b and earnings per share (EPS) of kr9.85 in 2024. So it's pretty clear consensus is mixed on Sparebanken Møre after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

There's been no major changes to the price target of kr95.67, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Sparebanken Møre, with the most bullish analyst valuing it at kr97.00 and the most bearish at kr95.00 per share. This is a very narrow spread of estimates, implying either that Sparebanken Møre is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Sparebanken Møre's revenue growth is expected to slow, with the forecast 5.5% annualised growth rate until the end of 2024 being well below the historical 7.6% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.1% per year. Even after the forecast slowdown in growth, it seems obvious that Sparebanken Møre is also expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sparebanken Møre. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Sparebanken Møre analysts - going out to 2025, and you can see them free on our platform here.

Even so, be aware that Sparebanken Møre is showing 1 warning sign in our investment analysis , you should know about...

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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.