Elmera Group ASA Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, Elmera Group ASA (OB:ELMRA) last week released its latest second-quarter, and things did not turn out so great for shareholders. Unfortunately, Elmera Group delivered a serious earnings miss. Revenues of kr2.1b were 17% below expectations, and statutory earnings per share of kr0.24 missed estimates by 38%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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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Following the recent earnings report, the consensus from three analysts covering Elmera Group is for revenues of kr10.9b in 2025. This implies a small 2.0% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to tumble 46% to kr1.45 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr13.1b and earnings per share (EPS) of kr1.81 in 2025. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a real cut to earnings per share numbers as well.

Check out our latest analysis for Elmera Group

Despite the cuts to forecast earnings, there was no real change to the kr34.00 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Elmera Group, with the most bullish analyst valuing it at kr39.00 and the most bearish at kr25.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 4.0% annualised decline to the end of 2025. That is a notable change from historical growth of 12% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Elmera Group is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Elmera Group. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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.

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 Elmera Group analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Elmera Group (of which 2 are a bit concerning!) you should know about.

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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.