Results: Rogaland Sparebank Exceeded Expectations And The Consensus Has Updated Its Estimates

Investors in Rogaland Sparebank (OB:ROGS) had a good week, as its shares rose 2.3% to close at kr133 following the release of its quarterly results. Revenues were kr223m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at kr3.70, an impressive 30% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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, the consensus forecast from Rogaland Sparebank's three analysts is for revenues of kr1.04b in 2025. This reflects a notable 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to fall 11% to kr12.92 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr981.4m and earnings per share (EPS) of kr12.13 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

See our latest analysis for Rogaland Sparebank

Despite these upgrades,the analysts have not made any major changes to their price target of kr139, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. Currently, the most bullish analyst values Rogaland Sparebank at kr145 per share, while the most bearish prices it at kr135. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Rogaland Sparebank's growth to accelerate, with the forecast 18% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Rogaland Sparebank 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 Rogaland Sparebank's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at kr139, 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 estimates - from multiple Rogaland Sparebank analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Rogaland Sparebank .

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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.