Bouvet ASA Just Beat EPS By 6.5%: Here's What Analysts Think Will Happen Next

Bouvet ASA (OB:BOUV) just released its second-quarter report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.0% to hit kr1.0b. Statutory earnings per share (EPS) came in at kr1.01, some 6.5% above whatthe analyst had expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is 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 estimate suggests is in store for next year.

View our latest analysis for Bouvet

After the latest results, the solitary analyst covering Bouvet are now predicting revenues of kr3.97b in 2024. If met, this would reflect an okay 5.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 7.6% to kr3.78. Before this earnings report, the analyst had been forecasting revenues of kr3.90b and earnings per share (EPS) of kr3.59 in 2024. So the consensus seems to have become somewhat more optimistic on Bouvet's earnings potential following these results.

The consensus price target rose 23% to kr80.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bouvet's past performance and to peers in the same industry. 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. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.4% annually. So it's pretty clear that Bouvet is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Bouvet's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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. We have analyst estimates for Bouvet going out as far as 2026, and you can see them free on our platform here.

You can also see our analysis of Bouvet's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.