Rana Gruber ASA Just Beat EPS By 43%: Here's What Analysts Think Will Happen Next

It's been a good week for Rana Gruber ASA (OB:RANA) shareholders, because the company has just released its latest yearly results, and the shares gained 5.0% to kr63.40. Revenues were kr1.4b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at kr13.39, an impressive 43% ahead of estimates. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Rana Gruber

Taking into account the latest results, the current consensus from Rana Gruber's two analysts is for revenues of kr1.55b in 2023, which would reflect a solid 8.9% increase on its sales over the past 12 months. Statutory earnings per share are expected to descend 11% to kr11.93 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr1.53b and earnings per share (EPS) of kr11.10 in 2023. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 13% to kr65.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Rana Gruber's past performance and to peers in the same industry. It's clear from the latest estimates that Rana Gruber's rate of growth is expected to accelerate meaningfully, with the forecast 8.9% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 3.2% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 1.6% per year. It seems obvious that as part of the brighter growth outlook, Rana Gruber is 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 Rana Gruber's earnings potential next year. Fortunately, they also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations. Their estimates also suggest that Rana Gruber's revenues are expected to perform better than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Rana Gruber going out as far as 2024, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Rana Gruber you should know about.

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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.