Analyst Forecasts Just Became More Bearish On Sparebanken Sør (OB:SOR)

The analysts covering Sparebanken Sør (OB:SOR) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After the downgrade, the consensus from Sparebanken Sør's two analysts is for revenues of kr2.2b in 2021, which would reflect a chunky 14% decline in sales compared to the last year of performance. Before the latest update, the analysts were foreseeing kr2.5b of revenue in 2021. It looks like forecasts have become a fair bit less optimistic on Sparebanken Sør, given the measurable cut to revenue estimates.

Check out our latest analysis for Sparebanken Sør

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 sales are expected to reverse, with a forecast 18% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 5.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.9% per year. It's pretty clear that Sparebanken Sør's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Sparebanken Sør this year. They're also anticipating slower revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Sparebanken Sør going forwards.

Looking to learn more? At least one of Sparebanken Sør's two analysts has provided estimates out to 2023, 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.

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