SpareBank 1 Sør-Norge ASA Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

SpareBank 1 Sør-Norge ASA (OB:SB1NO) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 9.2% to hit kr3.5b. SpareBank 1 Sør-Norge reported statutory earnings per share (EPS) kr4.29, which was a notable 17% above what the analysts had forecast. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following last week's earnings report, SpareBank 1 Sør-Norge's four analysts are forecasting 2026 revenues to be kr13.6b, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 2.6% to kr16.80. In the lead-up to this report, the analysts had been modelling revenues of kr13.7b and earnings per share (EPS) of kr16.89 in 2026. 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 SpareBank 1 Sør-Norge

The consensus price target rose 15% to kr191despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of SpareBank 1 Sør-Norge's earnings by assigning a price premium. 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 Sør-Norge at kr205 per share, while the most bearish prices it at kr180. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting SpareBank 1 Sør-Norge is an easy business to forecast or the the analysts are all using similar assumptions.

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. We would highlight that SpareBank 1 Sør-Norge's revenue growth is expected to slow, with the forecast 0.8% annualised growth rate until the end of 2026 being well below the historical 20% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 2.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than SpareBank 1 Sør-Norge.

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 SpareBank 1 Sør-Norge's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for SpareBank 1 Sør-Norge going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - SpareBank 1 Sør-Norge has 2 warning signs (and 1 which is concerning) we think you should know about.

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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.