Earnings Beat: Norbit ASA Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Norbit ASA (OB:NORBT) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 4.9% to hit kr419m. Norbit also reported a statutory profit of kr1.20, which was an impressive 50% above what the analyst had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Norbit after the latest results.

View our latest analysis for Norbit

Taking into account the latest results, the most recent consensus for Norbit from one analyst is for revenues of kr1.80b in 2024. If met, it would imply a solid 16% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 59% to kr4.20. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr1.75b and earnings per share (EPS) of kr4.00 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analyst becoming a bit more optimistic in their predictions for both revenues and earnings.

It will come as no surprise to learn that the analyst has increased their price target for Norbit 10% to kr110on the back of these upgrades.

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. It's clear from the latest estimates that Norbit's rate of growth is expected to accelerate meaningfully, with the forecast 35% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 23% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Norbit is expected to grow much 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 Norbit following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Norbit. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Even so, be aware that Norbit is showing 2 warning signs in our investment analysis , you should know about...

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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.