Stock Analysis

Bullish: Analysts Just Made An Incredible Upgrade To Their Sandnes Sparebank (OB:SADG) Forecasts

OB:ROGS
Source: Shutterstock

Shareholders in Sandnes Sparebank (OB:SADG) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

After this upgrade, Sandnes Sparebank's dual analysts are now forecasting revenues of kr726m in 2022. This would be a meaningful 15% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to swell 16% to kr9.73. Before this latest update, the analysts had been forecasting revenues of kr587m and earnings per share (EPS) of kr7.30 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for Sandnes Sparebank

earnings-and-revenue-growth
OB:SADG Earnings and Revenue Growth August 20th 2022

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Sandnes Sparebank's growth to accelerate, with the forecast 32% annualised growth to the end of 2022 ranking favourably alongside historical growth of 4.1% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sandnes Sparebank is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Sandnes Sparebank's future.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

New: AI Stock Screener & Alerts

Our new AI Stock Screener scans the market every day to uncover opportunities.

• Dividend Powerhouses (3%+ Yield)
• Undervalued Small Caps with Insider Buying
• High growth Tech and AI Companies

Or build your own from over 50 metrics.

Explore Now for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

About OB:ROGS

Rogaland Sparebank

An independent savings bank, provides a range of banking and investment products to retail and corporate customers in Norway.

Solid track record average dividend payer.

Community Narratives

Leading the Game with Growth, Innovation, and Exceptional Returns
Fair Value SEK 300.00|49.486999999999995% undervalued
Investingwilly
Investingwilly
Community Contributor
Why ASML Dominates the Chip Market
Fair Value €864.91|16.442% undervalued
yiannisz
yiannisz
Community Contributor
Global Payments will reach new heights with a 34% upside potential
Fair Value US$142.00|20.528% undervalued
Maxell
Maxell
Community Contributor