Results: SpareBank 1 Østlandet Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, SpareBank 1 Østlandet (OB:SPOL) recently reported its first-quarter numbers. The result was positive overall - although revenues of kr1.7b were in line with what the analysts predicted, SpareBank 1 Østlandet surprised by delivering a statutory profit of kr4.44 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

We've discovered 1 warning sign about SpareBank 1 Østlandet. View them for free.

Following the latest results, SpareBank 1 Østlandet's four analysts are now forecasting revenues of kr6.99b in 2025. This would be a reasonable 3.5% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr7.00b and earnings per share (EPS) of kr16.32 in 2025. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

Check out our latest analysis for SpareBank 1 Østlandet

There's been no real change to the consensus price target of kr169, with SpareBank 1 Østlandet seemingly executing in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic SpareBank 1 Østlandet analyst has a price target of kr180 per share, while the most pessimistic values it at kr160. This is a very narrow spread of estimates, implying either that SpareBank 1 Østlandet is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that SpareBank 1 Østlandet's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.7% growth on an annualised basis. This is compared to a historical growth rate of 12% 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 3.1% annually. Even after the forecast slowdown in growth, it seems obvious that SpareBank 1 Østlandet is also expected to grow faster than the wider industry.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Happily, there were no major changes to revenue forecasts, with the business still 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.

At least one of SpareBank 1 Østlandet's four analysts has provided estimates out to 2027, which can be seen for free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with SpareBank 1 Østlandet .

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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.