Here's What Analysts Are Forecasting For StrongPoint ASA (OB:STRO) After Its Second-Quarter Results

StrongPoint ASA (OB:STRO) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The results were positive, with revenue coming in at kr350m, beating analyst expectations by 6.1%. The analysts 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from StrongPoint's two analysts is for revenues of kr1.43b in 2025. This reflects a modest 5.6% improvement in revenue compared to the last 12 months. Per-share statutory losses are expected to explode, reaching kr0.02 per share. Before this earnings report, the analysts had been forecasting revenues of kr1.41b and earnings per share (EPS) of kr0.015 in 2025. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.

View our latest analysis for StrongPoint

The consensus price target held steady at kr13.00, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting StrongPoint's growth to accelerate, with the forecast 11% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 16% annually. So it's clear that despite the acceleration in growth, StrongPoint is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest low-light for us was that the forecasts for StrongPoint dropped from profits to a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that StrongPoint's revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr13.00, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on StrongPoint. Long-term earnings power is much more important than next year's profits. We have analyst estimates for StrongPoint going out as far as 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for StrongPoint that you need to take into consideration.

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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.