Earnings Miss: Rana Gruber ASA Missed EPS By 27% And Analysts Are Revising Their Forecasts

Last week saw the newest quarterly earnings release from Rana Gruber ASA (OB:RANA), an important milestone in the company's journey to build a stronger business. Statutory earnings per share fell badly short of expectations, coming in at kr3.28, some 27% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at kr548m. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Rana Gruber

Taking into account the latest results, the current consensus, from the twin analysts covering Rana Gruber, is for revenues of kr1.58b in 2024. This implies a considerable 18% reduction in Rana Gruber's revenue over the past 12 months. Statutory earnings per share are expected to plummet 26% to kr10.83 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr1.60b and earnings per share (EPS) of kr11.93 in 2024. 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.

The consensus price target held steady at kr77.50, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

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. Over the past three years, revenues have declined around 2.5% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 33% decline in revenue until the end of 2024. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 1.9% per year. So while a broad number of companies are forecast to grow, unfortunately Rana Gruber is expected to see its revenue affected worse than other companies in the 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Rana Gruber's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 analyst estimates for Rana Gruber going out as far as 2026, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Rana Gruber (including 2 which are potentially serious) .

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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.