SmartCraft ASA (OB:SMCRT) Annual Results: Here's What Analysts Are Forecasting For This Year

Last week, you might have seen that SmartCraft ASA (OB:SMCRT) released its annual result to the market. The early response was not positive, with shares down 5.4% to kr26.20 in the past week. It looks like the results were a bit of a negative overall. While revenues of kr511m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.6% to hit kr0.63 per share. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for SmartCraft

Taking into account the latest results, the current consensus from SmartCraft's four analysts is for revenues of kr577.3m in 2025. This would reflect a solid 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 6.1% to kr0.67. In the lead-up to this report, the analysts had been modelling revenues of kr594.7m and earnings per share (EPS) of kr0.86 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

The analysts made no major changes to their price target of kr33.75, suggesting the downgrades are not expected to have a long-term impact on SmartCraft's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic SmartCraft analyst has a price target of kr36.00 per share, while the most pessimistic values it at kr32.00. This is a very narrow spread of estimates, implying either that SmartCraft is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that SmartCraft's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past five years. Compare this to the 12 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 13% per year. Factoring in the forecast slowdown in growth, it looks like SmartCraft is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for SmartCraft going out to 2027, and you can see them free on our platform here.

We also provide an overview of the SmartCraft 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.