Results: Nordic Semiconductor ASA Exceeded Expectations And The Consensus Has Updated Its Estimates

Nordic Semiconductor ASA (OB:NOD) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of US$165m, some 4.6% above estimates, and statutory earnings per share (EPS) coming in at US$0.052, 71% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Nordic Semiconductor's twelve analysts are now forecasting revenues of US$663.9m in 2025. This would be an okay 5.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 72% to US$0.12. Before this earnings report, the analysts had been forecasting revenues of US$623.3m and earnings per share (EPS) of US$0.087 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a great increase in earnings per share in particular.

Check out our latest analysis for Nordic Semiconductor

It will come as no surprise to learn that the analysts have increased their price target for Nordic Semiconductor 6.3% to kr140on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Nordic Semiconductor analyst has a price target of kr190 per share, while the most pessimistic values it at kr109. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Nordic Semiconductor's growth to accelerate, with the forecast 12% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.4% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nordic Semiconductor to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Nordic Semiconductor following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts 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 Simply Wall St, we have a full range of analyst estimates for Nordic Semiconductor going out to 2027, and you can see them free on our platform here..

We also provide an overview of the Nordic Semiconductor Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.