Nordea Bank Abp (STO:NDA SE) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

The quarterly results for Nordea Bank Abp (STO:NDA SE) were released last week, making it a good time to revisit its performance. The result was positive overall - although revenues of €3.0b were in line with what the analysts predicted, Nordea Bank Abp surprised by delivering a statutory profit of €0.37 per share, modestly greater than expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Nordea Bank Abp

Taking into account the latest results, the current consensus from Nordea Bank Abp's 15 analysts is for revenues of €12.1b in 2024. This would reflect a credible 2.4% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be €1.44, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €12.0b and earnings per share (EPS) of €1.45 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of kr150, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Nordea Bank Abp analyst has a price target of kr170 per share, while the most pessimistic values it at kr120. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Nordea Bank Abp's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.9% growth on an annualised basis. This is compared to a historical growth rate of 9.7% over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 1.3% per year. Factoring in the forecast slowdown in growth, it's pretty clear that Nordea Bank Abp is still expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Nordea Bank Abp's revenue is expected to perform better than the wider industry. The consensus price target held steady at kr150, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Nordea Bank Abp. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Nordea Bank Abp analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Nordea Bank Abp you should be aware of, and 1 of them shouldn't be ignored.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com