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Entra ASA Just Missed EPS By 71%: Here's What Analysts Think Will Happen Next
It's been a sad week for Entra ASA (OB:ENTRA), who've watched their investment drop 10% to kr123 in the week since the company reported its third-quarter result. It looks like a pretty bad result, all things considered. Although revenues of kr770m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 71% to hit kr0.47 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Entra
Taking into account the latest results, the four analysts covering Entra provided consensus estimates of kr3.20b revenue in 2025, which would reflect a measurable 6.8% decline over the past 12 months. Entra is also expected to turn profitable, with statutory earnings of kr7.21 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr3.25b and earnings per share (EPS) of kr7.43 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 kr134, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Entra at kr147 per share, while the most bearish prices it at kr111. 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 would highlight that revenue is expected to reverse, with a forecast 5.5% annualised decline to the end of 2025. That is a notable change from historical growth of 7.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 1.6% per year. It's pretty clear that Entra's revenues are expected to perform substantially worse than the wider 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Entra going out to 2026, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 1 warning sign for Entra that you need to be mindful of.
Valuation is complex, but we're here to simplify it.
Discover if Entra might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.
About OB:ENTRA
Entra
Operates as a commercial real estate company Oslo, Bergen, Trondheim, Sandvika, Drammen, and Stavanger areas in Norway.
Moderate growth potential and slightly overvalued.