Earnings Miss: NRC Group ASA Missed EPS By 13% And Analysts Are Revising Their Forecasts

As you might know, NRC Group ASA (OB:NRC) last week released its latest quarterly, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at kr1.8b, statutory earnings missed forecasts by 13%, coming in at just kr0.17 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on NRC Group after the latest results.

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Taking into account the latest results, the most recent consensus for NRC Group from twin analysts is for revenues of kr7.40b in 2026. If met, it would imply a meaningful 12% increase on its revenue over the past 12 months. NRC Group is also expected to turn profitable, with statutory earnings of kr0.70 per share. In the lead-up to this report, the analysts had been modelling revenues of kr7.33b and earnings per share (EPS) of kr0.66 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for NRC Group

There's been no major changes to the consensus price target of kr8.15, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

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. It's clear from the latest estimates that NRC Group's rate of growth is expected to accelerate meaningfully, with the forecast 9.9% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.2% 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 7.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that NRC Group is expected to grow much faster than its 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 NRC Group following these results. 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 kr8.15, with the latest estimates not enough to have an impact on their price targets.

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

You should always think about risks though. Case in point, we've spotted 1 warning sign for NRC Group 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.