Sats ASA Just Missed Earnings - But Analysts Have Updated Their Models

Last week, you might have seen that Sats ASA (OB:SATS) released its first-quarter result to the market. The early response was not positive, with shares down 8.0% to kr34.50 in the past week. Sats beat revenue expectations by 2.4%, at kr1.4b. Statutory earnings per share (EPS) came in at kr0.46, some 7.2% short of analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the four analysts covering Sats are now predicting revenues of kr5.46b in 2025. If met, this would reflect a reasonable 5.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 42% to kr2.41. Before this earnings report, the analysts had been forecasting revenues of kr5.39b and earnings per share (EPS) of kr2.38 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Sats

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr41.50. 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 kr45.00 per share, while the most pessimistic values it at kr37.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. We can infer from the latest estimates that forecasts expect a continuation of Sats'historical trends, as the 7.6% annualised revenue growth to the end of 2025 is roughly in line with the 9.2% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 6.9% per year. It's clear that while Sats' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at kr41.50, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Sats going out to 2027, 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 .

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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.