Results: Kongsberg Gruppen ASA Beat Earnings Expectations And Analysts Now Have New Forecasts

Kongsberg Gruppen ASA (OB:KOG) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of kr15b, some 6.6% above estimates, and statutory earnings per share (EPS) coming in at kr12.94, 54% ahead of expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kongsberg Gruppen after the latest results.

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Taking into account the latest results, the consensus forecast from Kongsberg Gruppen's seven analysts is for revenues of kr59.1b in 2025. This reflects a meaningful 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 6.8% to kr38.16. Before this earnings report, the analysts had been forecasting revenues of kr58.2b and earnings per share (EPS) of kr36.48 in 2025. So the consensus seems to have become somewhat more optimistic on Kongsberg Gruppen's earnings potential following these results.

See our latest analysis for Kongsberg Gruppen

The consensus price target was unchanged at kr1,365, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Kongsberg Gruppen analyst has a price target of kr1,500 per share, while the most pessimistic values it at kr1,250. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Kongsberg Gruppen is an easy business to forecast or the the analysts are all using similar assumptions.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So it's pretty clear that Kongsberg Gruppen is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Kongsberg Gruppen's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr1,365, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Kongsberg Gruppen going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.