SmartCraft ASA Just Missed EPS By 20%: Here's What Analysts Think Will Happen Next

It's shaping up to be a tough period for SmartCraft ASA (OB:SMCRT), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Results showed a clear earnings miss, with kr137m revenue coming in 3.3% lower than what the analystsexpected. Statutory earnings per share (EPS) of kr0.13 missed the mark badly, arriving some 20% below what was expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for SmartCraft from four analysts is for revenues of kr577.2m in 2025. If met, it would imply a reasonable 7.3% increase on its revenue over the past 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr582.1m and earnings per share (EPS) of kr0.75 in 2025. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

View our latest analysis for SmartCraft

There's been no real change to the consensus price target of kr31.25, with SmartCraft seemingly executing in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic SmartCraft analyst has a price target of kr32.00 per share, while the most pessimistic values it at kr30.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We would highlight that SmartCraft's revenue growth is expected to slow, with the forecast 9.8% annualised growth rate until the end of 2025 being well below the historical 20% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that SmartCraft is also expected to grow slower than other industry participants.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

We have estimates for SmartCraft from its four analysts out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for SmartCraft that 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.