Deep Value Driller AS (OB:DVD) Just Released Its Annual Results And Analysts Are Updating Their Estimates

Deep Value Driller AS (OB:DVD) just released its latest annual report and things are not looking great. Unfortunately, Deep Value Driller delivered a serious earnings miss. Revenues of US$13m were 18% below expectations, and statutory losses ballooned 25% to US$0.27 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Deep Value Driller

Taking into account the latest results, the most recent consensus for Deep Value Driller from two analysts is for revenues of US$58.0m in 2024. If met, it would imply a substantial 359% increase on its revenue over the past 12 months. Earnings are expected to improve, with Deep Value Driller forecast to report a statutory profit of US$0.30 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$55.0m and earnings per share (EPS) of US$0.47 in 2024. While next year's revenue estimates increased, there was also a pretty serious reduction to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

The consensus price target was unchanged at kr34.48, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Deep Value Driller. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Deep Value Driller going out as far as 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Deep Value Driller , and understanding it should be part of your investment process.

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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.