kr15.00: That's What Analysts Think NRC Group ASA (OB:NRC) Is Worth After Its Latest Results

NRC Group ASA (OB:NRC) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. It was a credible result overall, with revenues of kr6.7b and statutory earnings per share of kr0.51 both in line with analyst estimates, showing that NRC Group is executing in line with expectations. Following the result, the analyst has 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

See our latest analysis for NRC Group

Taking into account the latest results, the consensus forecast from NRC Group's lone analyst is for revenues of kr7.12b in 2024. This reflects a credible 5.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 39% to kr0.73. In the lead-up to this report, the analyst had been modelling revenues of kr6.44b and earnings per share (EPS) of kr1.05 in 2024. Although revenue sentiment has improved substantially, the analyst has made a large cut to per-share earnings estimates, suggesting that the growth is not without cost.

The consensus price target fell 6.3% to kr15.00, suggesting that the analyst are primarily focused on earnings as the driver of value for this business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the NRC Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that NRC Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.7% growth on an annualised basis. This is compared to a historical growth rate of 8.5% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 18% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than NRC Group.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 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 2 warning signs for NRC Group that 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.