SpareBank 1 Nord-Norge (OB:NONG) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

As you might know, SpareBank 1 Nord-Norge (OB:NONG) recently reported its first-quarter numbers. It was a pretty mixed result, with revenues beating expectations to hit kr1.4b. Statutory earnings fell 3.4% short of analyst forecasts, reaching kr3.14 per share. 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 SpareBank 1 Nord-Norge after the latest results.

Check out our latest analysis for SpareBank 1 Nord-Norge

Taking into account the latest results, the consensus forecast from SpareBank 1 Nord-Norge's four analysts is for revenues of kr5.65b in 2024. This reflects a reasonable 7.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 21% to kr13.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr5.76b and earnings per share (EPS) of kr12.82 in 2024. So the consensus seems to have become somewhat more optimistic on SpareBank 1 Nord-Norge's earnings potential following these results.

The consensus price target was unchanged at kr112, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values SpareBank 1 Nord-Norge at kr115 per share, while the most bearish prices it at kr102. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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 clear from the latest estimates that SpareBank 1 Nord-Norge's rate of growth is expected to accelerate meaningfully, with the forecast 10% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 5.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SpareBank 1 Nord-Norge to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around SpareBank 1 Nord-Norge's earnings potential next year. 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 kr112, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on SpareBank 1 Nord-Norge. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple SpareBank 1 Nord-Norge analysts - going out to 2026, and you can see them free on our platform here.

You can also view our analysis of SpareBank 1 Nord-Norge's balance sheet, and whether we think SpareBank 1 Nord-Norge is carrying too much debt, 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.