Nordic Semiconductor ASA (OB:NOD) Analysts Are Way More Bearish Than They Used To Be

Today is shaping up negative for Nordic Semiconductor ASA (OB:NOD) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the latest downgrade, the current consensus, from the eleven analysts covering Nordic Semiconductor, is for revenues of US$459m in 2024, which would reflect a not inconsiderable 15% reduction in Nordic Semiconductor's sales over the past 12 months. Following this this downgrade, earnings are now expected to tip over into loss-making territory, with the analysts forecasting losses of US$0.25 per share in 2024. Previously, the analysts had been modelling revenues of US$576m and earnings per share (EPS) of US$0.15 in 2024. So we can see that the consensus has become notably more bearish on Nordic Semiconductor's outlook with these numbers, making a sizeable cut to this year's revenue estimates. Furthermore, they expect the business to be loss-making this year, compared to their previous forecasts of a profit.

See our latest analysis for Nordic Semiconductor

The consensus price target fell 11% to kr101, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 15% by the end of 2024. This indicates a significant reduction from annual growth of 22% 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 11% per year. It's pretty clear that Nordic Semiconductor's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest low-light for us was that the forecasts for Nordic Semiconductor dropped from profits to a loss this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Nordic Semiconductor's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Nordic Semiconductor.

There might be good reason for analyst bearishness towards Nordic Semiconductor, like concerns around earnings quality. For more information, you can click here to discover this and the 2 other flags we've identified.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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