Borregaard ASA (OB:BRG) Just Released Its Yearly Earnings: Here's What Analysts Think

It's been a good week for Borregaard ASA (OB:BRG) shareholders, because the company has just released its latest annual results, and the shares gained 5.8% to kr203. Revenues of kr7.6b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr8.25, missing estimates by 2.7%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Borregaard

Following the latest results, Borregaard's five analysts are now forecasting revenues of kr8.23b in 2025. This would be a notable 8.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 21% to kr10.03. Before this earnings report, the analysts had been forecasting revenues of kr8.30b and earnings per share (EPS) of kr10.31 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at kr229, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Borregaard at kr240 per share, while the most bearish prices it at kr215. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Borregaard'shistorical trends, as the 8.0% annualised revenue growth to the end of 2025 is roughly in line with the 9.2% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.4% per year. So it's pretty clear that Borregaard is forecast to grow substantially faster than its 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. 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 kr229, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Borregaard analysts - going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Borregaard's balance sheet, and whether we think Borregaard is carrying too much debt, 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.