SpareBank 1 Sør-Norge ASA Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

SpareBank 1 Sør-Norge ASA (OB:SB1NO) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat expectations with revenues of kr2.8b arriving 3.9% ahead of forecasts. Statutory earnings per share (EPS) were kr5.19, 5.9% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for SpareBank 1 Sør-Norge

Following the latest results, SpareBank 1 Sør-Norge's four analysts are now forecasting revenues of kr13.1b in 2025. This would be a major 31% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to descend 19% to kr15.56 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr13.4b and earnings per share (EPS) of kr15.48 in 2025. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The consensus has reconfirmed its price target of kr161, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on SpareBank 1 Sør-Norge's market value. 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 SpareBank 1 Sør-Norge at kr170 per share, while the most bearish prices it at kr150. 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.

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 Sør-Norge's rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 15% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 0.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SpareBank 1 Sør-Norge to grow faster than 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. They also downgraded SpareBank 1 Sør-Norge's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Still, earnings per share are more important to value creation for shareholders. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 2026, 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 1 warning sign we think you should be aware of.

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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.