The Consensus EPS Estimates For Deep Value Driller AS (OB:DVD) Just Fell A Lot

Today is shaping up negative for Deep Value Driller AS (OB:DVD) shareholders, with the covering analyst delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon. Surprisingly the share price has been buoyant, rising 41% to kr14.40 in the past 7 days. It will be interesting to see if the downgrade has an impact on buying demand for the company's shares.

After the downgrade, the consensus from Deep Value Driller's one analyst is for revenues of US$47m in 2025, which would reflect a not inconsiderable 18% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to plummet 29% to US$0.18 in the same period. Previously, the analyst had been modelling revenues of US$58m and earnings per share (EPS) of US$0.24 in 2025. Indeed, we can see that the analyst is a lot more bearish about Deep Value Driller's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Deep Value Driller

Despite the cuts to forecast earnings, there was no real change to the US$2.04 price target, showing that the analyst don't think the changes have a meaningful impact on its intrinsic value. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Deep Value Driller at US$2.23 per share, while the most bearish prices it at US$1.84. Still, with such a tight range of estimates, it suggests the analyst has a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 18% by the end of 2025. This indicates a significant reduction from annual growth of 131% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.6% annually for the foreseeable future. It's pretty clear that Deep Value Driller's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on Deep Value Driller after the downgrade.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for 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 downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.