Olav Thon Eiendomsselskap ASA Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders might have noticed that Olav Thon Eiendomsselskap ASA (OB:OLT) filed its quarterly result this time last week. The early response was not positive, with shares down 2.6% to kr228 in the past week. It looks like a pretty bad result, all things considered. Although revenues of kr1.2b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 52% to hit kr2.00 per share. Following the result, the analyst has 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

See our latest analysis for Olav Thon Eiendomsselskap

Taking into account the latest results, the consensus forecast from Olav Thon Eiendomsselskap's solitary analyst is for revenues of kr4.93b in 2024. This reflects a satisfactory 4.5% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Olav Thon Eiendomsselskap forecast to report a statutory profit of kr16.71 per share. Before this earnings report, the analyst had been forecasting revenues of kr4.96b and earnings per share (EPS) of kr19.11 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

Althoughthe analyst has revised their earnings forecasts for next year, they've also lifted the consensus price target 6.0% to kr265, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

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 clear from the latest estimates that Olav Thon Eiendomsselskap's rate of growth is expected to accelerate meaningfully, with the forecast 9.1% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Olav Thon Eiendomsselskap to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst 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. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Olav Thon Eiendomsselskap .

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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.