Sparebanken Vest Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Sparebanken Vest (OB:SVEG) just released its latest quarterly results and things are looking bullish. Sparebanken Vest beat earnings, with revenues hitting kr1.9b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 11%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sparebanken Vest after the latest results.

Check out our latest analysis for Sparebanken Vest

Following the latest results, Sparebanken Vest's five analysts are now forecasting revenues of kr7.42b in 2024. This would be a notable 8.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to sink 16% to kr15.80 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr7.22b and earnings per share (EPS) of kr15.02 in 2024. 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.

Despite these upgrades,the analysts have not made any major changes to their price target of kr144, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Sparebanken Vest analyst has a price target of kr150 per share, while the most pessimistic values it at kr135. This is a very narrow spread of estimates, implying either that Sparebanken Vest is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sparebanken Vest's past performance and to peers in the same industry. The analysts are definitely expecting Sparebanken Vest's growth to accelerate, with the forecast 18% annualised growth to the end of 2024 ranking favourably alongside historical growth of 12% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 0.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sparebanken Vest to grow faster than the wider 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 Sparebanken Vest 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Sparebanken Vest going out to 2026, and you can see them free on our platform here..

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

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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.