Analyst Estimates: Here's What Brokers Think Of Veidekke ASA (OB:VEI) After Its Third-Quarter Report

Investors in Veidekke ASA (OB:VEI) had a good week, as its shares rose 6.2% to close at kr133 following the release of its third-quarter results. Veidekke missed revenue estimates by 2.7%, coming in atkr9.7b, although statutory earnings per share (EPS) of kr3.40 beat expectations, coming in 4.0% ahead of analyst estimates. The analyst 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 analyst has changed their mind on Veidekke after the latest results.

View our latest analysis for Veidekke

Following the latest results, Veidekke's single analyst are now forecasting revenues of kr43.5b in 2025. This would be a modest 3.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 4.5% to kr10.11. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr42.8b and earnings per share (EPS) of kr9.87 in 2025. The analyst seem to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at kr140, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Veidekke's revenue growth is expected to slow, with the forecast 2.7% annualised growth rate until the end of 2025 being well below the historical 3.5% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 20% 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 Veidekke.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Veidekke following these results. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Veidekke's revenue is expected to perform worse 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Veidekke. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Veidekke you should know about.

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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.