SpareBank 1 Sør-Norge ASA Just Recorded A 13% EPS Beat: Here's What Analysts Are Forecasting Next

SpareBank 1 Sør-Norge ASA (OB:SB1NO) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 8.7% to hit kr3.5b. SpareBank 1 Sør-Norge reported statutory earnings per share (EPS) kr4.37, which was a notable 13% 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, SpareBank 1 Sør-Norge's four analysts are now forecasting revenues of kr13.6b in 2025. This would be a decent 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 20% to kr17.41. In the lead-up to this report, the analysts had been modelling revenues of kr13.2b and earnings per share (EPS) of kr16.13 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.

Check out our latest analysis for SpareBank 1 Sør-Norge

Despite these upgrades,the analysts have not made any major changes to their price target of kr174, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values SpareBank 1 Sør-Norge at kr195 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against 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 25% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 19% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that SpareBank 1 Sør-Norge is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards SpareBank 1 Sør-Norge following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts 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 significant) 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.