kr150: That's What Analysts Think Veidekke ASA (OB:VEI) Is Worth After Its Latest Results

Last week, you might have seen that Veidekke ASA (OB:VEI) released its quarterly result to the market. The early response was not positive, with shares down 6.7% to kr148 in the past week. The result was fairly weak overall, with revenues of kr9.0b being 5.3% less than what the analyst had been modelling. 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. 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.

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Taking into account the latest results, the consensus forecast from Veidekke's lone analyst is for revenues of kr43.2b in 2025. This reflects a reasonable 5.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 11% to kr10.09. Before this earnings report, the analyst had been forecasting revenues of kr43.4b and earnings per share (EPS) of kr10.07 in 2025. So it's pretty clear that, although the analyst has updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Veidekke

The consensus price target fell 6.3% to kr150, suggesting that the analyst might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results.

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 Veidekke's rate of growth is expected to accelerate meaningfully, with the forecast 7.5% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 13% annually. So it's clear that despite the acceleration in growth, Veidekke is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analyst reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Veidekke's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Veidekke going out as far as 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Veidekke that we have uncovered.

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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.