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

Explore Veidekke's Fair Values from the Community and select yours

Shareholders might have noticed that Veidekke ASA (OB:VEI) filed its quarterly result this time last week. The early response was not positive, with shares down 2.5% to kr163 in the past week. Veidekke reported kr11b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr2.90 beat expectations, being 4.3% higher than what the analyst expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. 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.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

After the latest results, the solitary analyst covering Veidekke are now predicting revenues of kr42.5b in 2025. If met, this would reflect an okay 2.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 7.2% to kr10.07. Before this earnings report, the analyst had been forecasting revenues of kr43.4b and earnings per share (EPS) of kr10.14 in 2025. So it looks like the analyst has become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

See our latest analysis for Veidekke

It will come as no surprise then, that the consensus price target fell 6.3% to kr150following these changes.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Veidekke's past performance and to peers in the same industry. The analyst is definitely expecting Veidekke's growth to accelerate, with the forecast 4.8% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 11% 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Still, earnings per share are more important to value creation for shareholders. 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.

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 analyst estimates for Veidekke going out as far as 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Veidekke that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.