Earnings Update: Here's Why Analysts Just Lifted Their Endúr ASA (OB:ENDUR) Price Target To kr100.00

Investors in Endúr ASA (OB:ENDUR) had a good week, as its shares rose 8.5% to close at kr79.10 following the release of its yearly results. It was an okay result overall, with revenues coming in at kr2.8b, roughly what the analysts had been expecting. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Endúr

Taking into account the latest results, the consensus forecast from Endúr's dual analysts is for revenues of kr4.01b in 2025. This reflects a substantial 44% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 194% to kr3.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr3.86b and earnings per share (EPS) of kr4.31 in 2025. So it's pretty clear the analysts have mixed opinions on Endúr after the latest results; even though they upped their revenue numbers, it came at the cost of a real cut to per-share earnings expectations.

Curiously, the consensus price target rose 5.3% to kr100.00. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Endúr's rate of growth is expected to accelerate meaningfully, with the forecast 44% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 31% p.a. 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 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Endúr is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Endúr. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Endúr. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Endúr going out as far as 2027, and you can see them free on our platform here.

You can also see whether Endúr is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.