NCC AB (publ) (STO:NCC B) Just Released Its Annual Earnings: Here's What Analysts Think

NCC AB (publ) (STO:NCC B) defied analyst predictions to release its annual results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 2.9% to hit kr62b. Statutory earnings per share (EPS) came in at kr16.08, some 2.7% above whatthe analysts had expected. 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, the current consensus, from the four analysts covering NCC, is for revenues of kr59.2b in 2025. This implies a discernible 3.9% reduction in NCC's revenue over the past 12 months. Statutory earnings per share are forecast to sink 13% to kr14.02 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr59.0b and earnings per share (EPS) of kr14.13 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for NCC

There were no changes to revenue or earnings estimates or the price target of kr205, 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. Currently, the most bullish analyst values NCC at kr220 per share, while the most bearish prices it at kr190. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 3.9% annualised decline to the end of 2025. That is a notable change from historical growth of 0.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.1% annually for the foreseeable future. It's pretty clear that NCC's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that NCC's revenue is expected to 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for NCC going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with NCC .

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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.