Earnings Report: Rogaland Sparebank Missed Revenue Estimates By 21%

As you might know, Rogaland Sparebank (OB:ROGS) last week released its latest second-quarter, and things did not turn out so great for shareholders. Earnings missed the mark, with revenues of kr224m coming up 21% short, and statutory earnings per share of kr3.70 missing estimates by 13%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, Rogaland Sparebank's three analysts currently expect revenues in 2025 to be kr977.8m, approximately in line with the last 12 months. Statutory earnings per share are expected to crater 36% to kr12.44 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr978.4m and earnings per share (EPS) of kr12.39 in 2025. 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.

View our latest analysis for Rogaland Sparebank

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr141. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Rogaland Sparebank at kr145 per share, while the most bearish prices it at kr137. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company 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. We would highlight that revenue is expected to reverse, with a forecast 0.2% annualised decline to the end of 2025. That is a notable change from historical growth of 10% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Rogaland Sparebank is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Rogaland Sparebank's revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr141, 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 Rogaland Sparebank. Long-term earnings power is much more important than next year's profits. We have forecasts for Rogaland Sparebank going out to 2027, and you can see them free on our platform here.

Even so, be aware that Rogaland Sparebank is showing 2 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

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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.