Analysts Are Updating Their Sats ASA (OB:SATS) Estimates After Its Third-Quarter Results

Investors in Sats ASA (OB:SATS) had a good week, as its shares rose 3.0% to close at kr22.25 following the release of its third-quarter results. The result was positive overall - although revenues of kr1.2b were in line with what the analysts predicted, Sats surprised by delivering a statutory profit of kr0.35 per share, modestly greater than expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Sats

Taking into account the latest results, the current consensus from Sats' three analysts is for revenues of kr5.29b in 2025. This would reflect an okay 6.1% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 40% to kr1.95. Before this earnings report, the analysts had been forecasting revenues of kr5.26b and earnings per share (EPS) of kr1.95 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr27.67. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Sats analyst has a price target of kr30.00 per share, while the most pessimistic values it at kr26.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Sats' revenue growth is expected to slow, with the forecast 4.9% annualised growth rate until the end of 2025 being well below the historical 7.0% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.4% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Sats.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Sats' revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr27.67, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Sats going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Sats (including 1 which makes us a bit uncomfortable) .

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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.