Earnings Update: Integrated Wind Solutions ASA (OB:IWS) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

It's been a good week for Integrated Wind Solutions ASA (OB:IWS) shareholders, because the company has just released its latest third-quarter results, and the shares gained 4.7% to kr45.00. It looks like the results were pretty good overall. While revenues of kr63m were in line with analyst predictions, statutory losses were much smaller than expected, with Integrated Wind Solutions losing kr0.16 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Integrated Wind Solutions

Taking into account the latest results, the consensus forecast from Integrated Wind Solutions' twin analysts is for revenues of kr612.5m in 2024. This reflects a major 157% improvement in revenue compared to the last 12 months. Integrated Wind Solutions is also expected to turn profitable, with statutory earnings of kr0.62 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr590.5m and earnings per share (EPS) of kr0.74 in 2024. So it's pretty clear the analysts have mixed opinions on Integrated Wind Solutions after the latest results; even though they upped their revenue numbers, it came at the cost of a substantial drop in per-share earnings expectations.

There's been no major changes to the price target of kr47.50, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Integrated Wind Solutions' rate of growth is expected to accelerate meaningfully, with the forecast 113% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 63% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Integrated Wind Solutions is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them 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. We have analyst estimates for Integrated Wind Solutions going out as far as 2025, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Integrated Wind Solutions (1 is concerning) 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.