kr95.31 - That's What Analysts Think Wallenius Wilhelmsen ASA (OB:WAWI) Is Worth After These Results

Explore Wallenius Wilhelmsen's Fair Values from the Community and select yours

As you might know, Wallenius Wilhelmsen ASA (OB:WAWI) recently reported its quarterly numbers. It was a credible result overall, with revenues of US$1.4b and statutory earnings per share of US$0.90 both in line with analyst estimates, showing that Wallenius Wilhelmsen is executing in line with expectations. 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.

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Taking into account the latest results, Wallenius Wilhelmsen's four analysts currently expect revenues in 2025 to be US$5.31b, approximately in line with the last 12 months. Statutory earnings per share are expected to shrink 3.4% to US$2.52 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$5.24b and earnings per share (EPS) of US$2.66 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

Check out our latest analysis for Wallenius Wilhelmsen

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 11% to kr95.31, suggesting the revised estimates are not indicative of a weaker long-term future for the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Wallenius Wilhelmsen, with the most bullish analyst valuing it at kr118 and the most bearish at kr59.81 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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.0% by the end of 2025. This indicates a significant reduction from annual growth of 12% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 2.4% annually for the foreseeable future. So it's pretty clear that Wallenius Wilhelmsen's revenues are expected to shrink slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Wallenius Wilhelmsen's revenue is expected to perform better than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 estimates - from multiple Wallenius Wilhelmsen analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Wallenius Wilhelmsen is showing 2 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

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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.