Itera ASA Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a good week for Itera ASA (OB:ITERA) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.5% to kr12.85. Results overall were not great, with earnings of kr0.10 per share falling drastically short of analyst expectations. Meanwhile revenues hit kr171m and were slightly better than forecasts. 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

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Taking into account the latest results, the current consensus from Itera's lone analyst is for revenues of kr823.0m in 2023, which would reflect a decent 14% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 53% to kr0.88. In the lead-up to this report, the analyst had been modelling revenues of kr808.9m and earnings per share (EPS) of kr0.87 in 2023. The consensus analyst doesn't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With no major changes to earnings forecasts, the consensus price target fell 6.7% to kr14.00, suggesting that the analyst might have previously been hoping for an earnings upgrade.

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 analyst is definitely expecting Itera's growth to accelerate, with the forecast 11% annualised growth to the end of 2023 ranking favourably alongside historical growth of 7.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Itera is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analyst holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Itera's future valuation.

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 analyst estimates for Itera going out as far as 2024, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Itera that we have uncovered.

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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.