Multiconsult ASA Just Beat EPS By 113%: Here's What Analysts Think Will Happen Next

A week ago, Multiconsult ASA (OB:MULTI) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 4.1% to hit kr1.1b. Multiconsult also reported a statutory profit of kr2.95, which was an impressive 113% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Multiconsult

Taking into account the latest results, the current consensus from Multiconsult's four analysts is for revenues of kr5.65b in 2025. This would reflect a reasonable 6.5% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to reduce 9.6% to kr14.50 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr5.62b and earnings per share (EPS) of kr13.61 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.5% to kr205. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Multiconsult, with the most bullish analyst valuing it at kr220 and the most bearish at kr180 per share. This is a very narrow spread of estimates, implying either that Multiconsult is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Multiconsult's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 8.7% over the past five years. Compare this to the 137 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.7% per year. Factoring in the forecast slowdown in growth, it looks like Multiconsult is forecast to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Multiconsult going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for Multiconsult (1 can't be ignored!) 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.