Here's What Analysts Are Forecasting For Odfjell Technology Ltd. (OB:OTL) After Its Yearly Results

Shareholders of Odfjell Technology Ltd. (OB:OTL) will be pleased this week, given that the stock price is up 10% to kr50.80 following its latest yearly results. Results were roughly in line with estimates, with revenues of kr5.4b and statutory earnings per share of kr6.38. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Odfjell Technology

Taking into account the latest results, the four analysts covering Odfjell Technology provided consensus estimates of kr5.30b revenue in 2025, which would reflect a perceptible 2.3% decline over the past 12 months. Per-share earnings are expected to bounce 31% to kr8.38. In the lead-up to this report, the analysts had been modelling revenues of kr5.41b and earnings per share (EPS) of kr8.88 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The analysts made no major changes to their price target of kr75.57, suggesting the downgrades are not expected to have a long-term impact on Odfjell Technology's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Odfjell Technology, with the most bullish analyst valuing it at kr87.96 and the most bearish at kr69.36 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Odfjell Technology's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 2.3% annualised decline to the end of 2025. That is a notable change from historical growth of 18% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Odfjell Technology is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at kr75.57, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Odfjell Technology 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 Odfjell Technology .

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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.