Results: Austevoll Seafood ASA Exceeded Expectations And The Consensus Has Updated Its Estimates

It's been a good week for Austevoll Seafood ASA (OB:AUSS) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.6% to kr94.40. Revenues missed the mark, coming in 11% below forecasts, at kr8.6b. Statutory profits were a real bright spot in contrast, with per-share profits of kr5.50 being a notable 125% above what the analysts were modelling. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Austevoll Seafood

Taking into account the latest results, the most recent consensus for Austevoll Seafood from five analysts is for revenues of kr37.4b in 2024. If met, it would imply a satisfactory 5.1% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 381% to kr12.51. In the lead-up to this report, the analysts had been modelling revenues of kr37.5b and earnings per share (EPS) of kr9.54 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the great increase in earnings per share expectations following these results.

There's been no major changes to the consensus price target of kr114, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Austevoll Seafood at kr126 per share, while the most bearish prices it at kr95.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Austevoll Seafood'shistorical trends, as the 11% annualised revenue growth to the end of 2024 is roughly in line with the 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.2% annually. So although Austevoll Seafood is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Austevoll Seafood's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr114, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Austevoll Seafood. Long-term earnings power is much more important than next year's profits. We have forecasts for Austevoll Seafood going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Austevoll Seafood .

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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.