Norbit ASA Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

It's been a pretty great week for Norbit ASA (OB:NORBT) shareholders, with its shares surging 16% to kr179 in the week since its latest quarterly results. It looks like a credible result overall - although revenues of kr522m were what the analyst expected, Norbit surprised by delivering a (statutory) profit of kr1.40 per share, an impressive 28% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

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After the latest results, the lone analyst covering Norbit are now predicting revenues of kr2.57b in 2025. If met, this would reflect a major 38% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 39% to kr6.62. In the lead-up to this report, the analyst had been modelling revenues of kr2.32b and earnings per share (EPS) of kr5.86 in 2025. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Norbit

With these upgrades, we're not surprised to see that the analyst has lifted their price target 38% to kr200per share.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Norbit's rate of growth is expected to accelerate meaningfully, with the forecast 53% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 24% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. 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. Happily, they also upgraded their revenue estimates, and are forecasting them 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 2027, which can be seen for free on our platform here.

You can also see whether Norbit is carrying too much debt, and whether its balance sheet is healthy, for free on our platform 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.