StrongPoint ASA (OB:STRO) Analysts Are Cutting Their Estimates: Here's What You Need To Know

The analysts might have been a bit too bullish on StrongPoint ASA (OB:STRO), given that the company fell short of expectations when it released its first-quarter results last week. Revenues missed expectations somewhat, coming in at kr347m, but statutory earnings fell catastrophically short, with a loss of kr0.19 some 280% larger than what the analysts had predicted. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on StrongPoint after the latest results.

We've discovered 1 warning sign about StrongPoint. View them for free.

Taking into account the latest results, the current consensus from StrongPoint's two analysts is for revenues of kr1.41b in 2025. This would reflect a notable 8.4% increase on its revenue over the past 12 months. Losses are expected to be contained, narrowing 19% from last year to kr0.52. Before this latest report, the consensus had been expecting revenues of kr1.48b and kr0.13 per share in losses. While this year's revenue estimates dropped there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

See our latest analysis for StrongPoint

The average price target fell 8.9% to kr12.75, implicitly signalling that lower earnings per share are a leading indicator for StrongPoint'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 period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 9.9% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 14% annually. So although StrongPoint is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at StrongPoint. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for StrongPoint going out as far as 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with StrongPoint , and understanding this should be part of your investment process.

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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.