Results: Protector Forsikring ASA Beat Earnings Expectations And Analysts Now Have New Forecasts

It's been a pretty great week for Protector Forsikring ASA (OB:PROT) shareholders, with its shares surging 11% to kr365 in the week since its latest quarterly results. It looks like a credible result overall - although revenues of kr3.3b were in line with what the analysts predicted, Protector Forsikring surprised by delivering a statutory profit of kr9.00 per share, a notable 12% above expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from Protector Forsikring's three analysts is for revenues of kr13.8b in 2025. This would reflect an okay 8.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 13% to kr25.02. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr13.8b and earnings per share (EPS) of kr21.60 in 2025. Although the revenue estimates have not really changed, we can see there's been a nice gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

View our latest analysis for Protector Forsikring

The consensus price target was unchanged at kr387, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Protector Forsikring analyst has a price target of kr400 per share, while the most pessimistic values it at kr380. This is a very narrow spread of estimates, implying either that Protector Forsikring is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Protector Forsikring's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 21% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.5% annually. So it's pretty clear that, while Protector Forsikring's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Protector Forsikring's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at kr387, 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 Protector Forsikring. Long-term earnings power is much more important than next year's profits. We have forecasts for Protector Forsikring going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.