Multiconsult ASA Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

It's been a pretty great week for Multiconsult ASA (OB:MULTI) shareholders, with its shares surging 11% to kr178 in the week since its latest second-quarter results. It looks like a credible result overall - although revenues of kr1.4b were what the analysts expected, Multiconsult surprised by delivering a (statutory) profit of kr5.36 per share, an impressive 34% above what was forecast. The analysts 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 analysts have changed their mind on Multiconsult after the latest results.

Check out our latest analysis for Multiconsult

Taking into account the latest results, the most recent consensus for Multiconsult from three analysts is for revenues of kr5.32b in 2024. If met, it would imply a satisfactory 3.7% increase on its revenue over the past 12 months. Statutory per share are forecast to be kr13.41, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of kr5.29b and earnings per share (EPS) of kr11.50 in 2024. Although the revenue estimates have not really changed, we can see there's been a nice gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target rose 11% to kr188, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Multiconsult, with the most bullish analyst valuing it at kr200 and the most bearish at kr170 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We can infer from the latest estimates that forecasts expect a continuation of Multiconsult'shistorical trends, as the 7.5% annualised revenue growth to the end of 2024 is roughly in line with the 8.1% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.8% per year. So although Multiconsult is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Multiconsult following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 forecasts for Multiconsult going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Multiconsult 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.