Shareholders in DNO ASA (OB:DNO) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.
Following the upgrade, the current consensus from DNO's three analysts is for revenues of US$1.5b in 2022 which - if met - would reflect a solid 9.9% increase on its sales over the past 12 months. Statutory earnings per share are presumed to leap 59% to US$0.50. Previously, the analysts had been modelling revenues of US$1.3b and earnings per share (EPS) of US$0.44 in 2022. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
View our latest analysis for DNO
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 DNO'shistorical trends, as the 21% annualised revenue growth to the end of 2022 is roughly in line with the 18% annual revenue 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 revenue shrink 8.7% annually. So it's clear that not only is revenue growth expected to be maintained, but DNO is expected to grow meaningfully faster than the wider industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than the wider market. More bullish expectations could be a signal for investors to take a closer look at DNO.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for DNO going out to 2024, and you can see them free on our platform here..
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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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.
About OB:DNO
DNO
Engages in the exploration, development, and production of oil and gas assets in the Middle East, the North Sea, and West Africa.
Excellent balance sheet with proven track record.
