SpareBank 1 Ringerike Hadeland Just Beat EPS By 36%: Here's What Analysts Think Will Happen Next

SpareBank 1 Ringerike Hadeland (OB:RING) just released its latest second-quarter results and things are looking bullish. Statutory revenue and earnings both blasted past expectations, with revenue of kr251m beating expectations by 22% and earnings per share (EPS) reaching kr8.00, some 36% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for SpareBank 1 Ringerike Hadeland

Taking into account the latest results, the consensus forecast from SpareBank 1 Ringerike Hadeland's twin analysts is for revenues of kr915.5m in 2021, which would reflect a reasonable 2.7% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to increase 5.3% to kr25.78. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr836.5m and earnings per share (EPS) of kr24.21 in 2021. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of kr295, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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 Ringerike Hadeland's rate of growth is expected to accelerate meaningfully, with the forecast 5.5% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 3.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.9% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, SpareBank 1 Ringerike Hadeland is expected to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards SpareBank 1 Ringerike Hadeland following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse than the wider industry. The consensus price target held steady at kr295, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for SpareBank 1 Ringerike Hadeland going out as far as 2023, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for SpareBank 1 Ringerike Hadeland that you need to take into consideration.

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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.
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