Akastor ASA (OB:AKAST) Just Reported Yearly Earnings And Analysts Are Lifting Their Estimates

Akastor ASA (OB:AKAST) shareholders are probably feeling a little disappointed, since its shares fell 5.6% to kr12.84 in the week after its latest annual results. Overall the results were a little better than the analyst was expecting, with revenues beating forecasts by 6.6%to hit kr1.1b. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

See our latest analysis for Akastor

After the latest results, the sole analyst covering Akastor are now predicting revenues of kr1.24b in 2023. If met, this would reflect a decent 17% improvement in sales compared to the last 12 months. Yet prior to the latest earnings, the analyst had been forecasting revenues of kr1.10b and losses of kr1.56 per share in 2023. What's really interesting is that while the consensus made a nice gain to revenue estimates, it no longer provides an earnings per share estimate, suggesting that - following the latest results - revenues are now the focus of the business.

The average price target rose 12% to kr14.50, with the analyst clearly having become more optimistic about Akastor'sprospects following these results.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Akastor's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Akastor is forecast to grow faster in the future than it has in the past, with revenues expected to display 17% annualised growth until the end of 2023. If achieved, this would be a much better result than the 29% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 14% annually. So while Akastor's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The highlight for us was that the analyst increased their revenue forecasts for Akastor next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

One Akastor broker/analyst has provided estimates out to 2025, which can be seen for free on our platform here.

You can also see whether Akastor is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.