Earnings Beat: SpareBank 1 Sørøst-Norge Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

SpareBank 1 Sørøst-Norge (OB:SOON) just released its latest first-quarter results and things are looking bullish. SpareBank 1 Sørøst-Norge beat earnings, with revenues hitting kr838m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 13%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on SpareBank 1 Sørøst-Norge after the latest results.

Check out our latest analysis for SpareBank 1 Sørøst-Norge

Taking into account the latest results, the consensus forecast from SpareBank 1 Sørøst-Norge's twin analysts is for revenues of kr3.28b in 2024. This reflects a satisfactory 4.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 2.4% to kr6.32. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr3.14b and earnings per share (EPS) of kr6.13 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Despite these upgrades,the analysts have not made any major changes to their price target of kr68.00, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that SpareBank 1 Sørøst-Norge's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 6.2% growth on an annualised basis. This is compared to a historical growth rate of 24% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.3% annually. So it's pretty clear that, while SpareBank 1 Sørøst-Norge's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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 Sørøst-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. The consensus price target held steady at kr68.00, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for SpareBank 1 Sørøst-Norge going out as far as 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for SpareBank 1 Sørøst-Norge that 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.