Revenue Beat: Odfjell SE Beat Analyst Estimates By 29%

A week ago, Odfjell SE (OB:ODF) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. Revenue of US$287m beat expectations by 29% and statutory earnings per share (EPS) of US$0.54 exceeded forecasts by 14%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following last week's earnings report, Odfjell's four analysts are forecasting 2026 revenues to be US$1.12b, approximately in line with the last 12 months. Statutory earnings per share are predicted to climb 14% to US$2.42. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.11b and earnings per share (EPS) of US$2.36 in 2026. So the consensus seems to have become somewhat more optimistic on Odfjell's earnings potential following these results.

See our latest analysis for Odfjell

The consensus price target was unchanged at kr155, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Odfjell, with the most bullish analyst valuing it at kr180 and the most bearish at kr125 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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. We would highlight that revenue is expected to reverse, with a forecast 1.6% annualised decline to the end of 2026. That is a notable change from historical growth of 5.1% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 0.8% per year. So it's pretty clear that Odfjell's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Odfjell following these results. They also made no changes to their revenue estimates, implying the business is not expected to experience any major impacts to the current trajectory in the near term, even though it is expected to trail the wider industry. 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 Odfjell going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Odfjell has 3 warning signs we think you should be aware of.

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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.