As you might know, Nordisk Bergteknik AB (publ) (STO:NORB B) just kicked off its latest full-year results with some very strong numbers. The company beat both earnings and revenue forecasts, with revenue of kr1.9b, some 4.1% above estimates, and statutory earnings per share (EPS) coming in at kr1.28, 65% ahead of 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.
Taking into account the latest results, the current consensus from Nordisk Bergteknik's twin analysts is for revenues of kr2.51b in 2022, which would reflect a huge 31% increase on its sales over the past 12 months. Statutory earnings per share are predicted to leap 143% to kr2.01. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr2.39b and earnings per share (EPS) of kr2.08 in 2022. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a huge to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.
Curiously, the consensus price target rose 20% to kr42.00. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings.
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. It's pretty clear that there is an expectation that Nordisk Bergteknik's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 31% growth on an annualised basis. This is compared to a historical growth rate of 43% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.3% annually. So it's pretty clear that, while Nordisk Bergteknik's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
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. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, 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 1 warning sign for Nordisk Bergteknik that you need to be mindful of.
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.