Veidekke ASA Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Veidekke ASA (OB:VEI) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Veidekke beat expectations by 2.2% with revenues of kr9.5b. It also surprised on the earnings front, with an unexpected statutory profit of kr0.10 per share a nice improvement on the losses that the analyst forecast. 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.

See our latest analysis for Veidekke

Following last week's earnings report, Veidekke's one analyst are forecasting 2024 revenues to be kr42.5b, approximately in line with the last 12 months. Per-share earnings are expected to increase 4.2% to kr9.18. In the lead-up to this report, the analyst had been modelling revenues of kr41.8b and earnings per share (EPS) of kr8.46 in 2024. So the consensus seems to have become somewhat more optimistic on Veidekke's earnings potential following these results.

The consensus price target was unchanged at kr125, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.0% by the end of 2024. This indicates a significant reduction from annual growth of 3.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 17% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Veidekke is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Veidekke's earnings potential next year. 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 held steady at kr125, with the latest estimates not enough to have an impact on their price target.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Veidekke going out as far as 2026, 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.

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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.