Entra ASA Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts

Shareholders might have noticed that Entra ASA (OB:ENTRA) filed its quarterly result this time last week. The early response was not positive, with shares down 6.0% to kr99.60 in the past week. Revenues came in at kr878m, in line with estimates, while Entra reported a statutory loss of kr5.30 per share, well short of prior analyst forecasts for a profit. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Entra

Taking into account the latest results, the current consensus from Entra's twin analysts is for revenues of kr3.45b in 2024. This would reflect an okay 3.2% increase on its revenue over the past 12 months. Per-share statutory losses are expected to explode, reaching kr1.15 per share. Before this earnings report, the analysts had been forecasting revenues of kr3.45b and earnings per share (EPS) of kr5.84 in 2024. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.

As a result, there was no major change to the consensus price target of kr105, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses.

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. It's pretty clear that there is an expectation that Entra's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.3% growth on an annualised basis. This is compared to a historical growth rate of 6.4% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.3% annually. So it's pretty clear that, while Entra's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest low-light for us was that the forecasts for Entra dropped from profits to a loss 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 kr105, with the latest estimates not enough to have an impact on their price targets.

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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

It is also worth noting that we have found 1 warning sign for Entra that you need to take into consideration.

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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.