Bouvet ASA Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Investors in Bouvet ASA (OB:BOUV) had a good week, as its shares rose 3.5% to close at kr64.20 following the release of its quarterly results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at kr1.0b, statutory earnings beat expectations by a notable 25%, coming in at kr1.01 per share. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

View our latest analysis for Bouvet

Taking into account the latest results, the consensus forecast from Bouvet's solitary analyst is for revenues of kr3.90b in 2024. This reflects a meaningful 8.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 13% to kr3.59. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr3.95b and earnings per share (EPS) of kr3.34 in 2024. The analyst seem to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 8.3% to kr65.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analyst, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 12% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 7.1% per year. So it's pretty clear that Bouvet is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Bouvet 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Bouvet. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Bouvet going out as far as 2026, and you can see them free on our platform here.

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

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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.