Results: Nordic Semiconductor ASA Beat Earnings Expectations And Analysts Now Have New Forecasts

Nordic Semiconductor ASA (OB:NOD) investors will be delighted, with the company turning in some strong numbers with its latest results. Nordic Semiconductor beat earnings, with revenues hitting US$166m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 12%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Nordic Semiconductor

After the latest results, the eleven analysts covering Nordic Semiconductor are now predicting revenues of US$616.0m in 2025. If met, this would reflect a sizeable 31% improvement in revenue compared to the last 12 months. Nordic Semiconductor is also expected to turn profitable, with statutory earnings of US$0.12 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$617.8m and earnings per share (EPS) of US$0.18 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

The consensus price target held steady at kr133, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Nordic Semiconductor, with the most bullish analyst valuing it at kr182 and the most bearish at kr85.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nordic Semiconductor's past performance and to peers in the same industry. The analysts are definitely expecting Nordic Semiconductor's growth to accelerate, with the forecast 24% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Nordic Semiconductor is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nordic Semiconductor. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

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. We have forecasts for Nordic Semiconductor going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Nordic Semiconductor has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.