Standard Supply AS (OB:STSU) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

The quarterly results for Standard Supply AS (OB:STSU) were released last week, making it a good time to revisit its performance. It was an okay report, and revenues came in at US$13m, approximately in line with analyst estimates leading up to the results announcement. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Standard Supply

Taking into account the latest results, the most recent consensus for Standard Supply from dual analysts is for revenues of US$48.0m in 2023. If met, it would imply a major 26% increase on its revenue over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$45.5m and earnings per share (EPS) of US$0.041 in 2023. What's really interesting is that while the consensus made a modest lift to revenue estimates, it no longer provides an earnings per share estimate. This suggests that revenues are now the focus of the business after this latest result.

We'd also point out that thatthe analysts have made no major changes to their price target of kr6.75.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Standard Supply's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 60% growth on an annualised basis. This is compared to a historical growth rate of 147% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 2.3% per year. So it's clear that despite the slowdown in growth, Standard Supply is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The highlight for us was that the analysts increased their revenue forecasts for Standard Supply next year. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than 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.

At least one of Standard Supply's dual analysts has provided estimates out to 2025, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 4 warning signs for Standard Supply (2 are concerning!) that you need to be mindful 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.