Bearish: Analysts Just Cut Their Nordic Halibut AS (OB:NOHAL) Revenue and EPS estimates

The analysts covering Nordic Halibut AS (OB:NOHAL) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business. Shares are up 6.7% to kr22.40 in the past week. We'd be curious to see if the downgrade is enough to reverse investor sentiment on the business.

Following the downgrade, the latest consensus from Nordic Halibut's dual analysts is for revenues of kr207m in 2024, which would reflect a sizeable 90% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 77% to kr0.43 per share. Before this latest update, the analysts had been forecasting revenues of kr251m and earnings per share (EPS) of kr0.27 in 2024. So we can see that the consensus has become notably more bearish on Nordic Halibut's outlook with these numbers, making a substantial drop in next year's revenue estimates. Furthermore, they expect the business to be loss-making next year, compared to their previous forecasts of a profit.

View our latest analysis for Nordic Halibut

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Nordic Halibut's rate of growth is expected to accelerate meaningfully, with the forecast 67% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 39% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nordic Halibut to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts are expecting Nordic Halibut to become unprofitable next year. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the serious cut to next year's outlook, it's clear that analysts have turned more bearish on Nordic Halibut, and we wouldn't blame shareholders for feeling a little more cautious themselves.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Nordic Halibut's business, like a short cash runway. Learn more, and discover the 1 other concern we've identified, for free on our platform here.

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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.