The Consensus EPS Estimates For Nordisk Bergteknik AB (publ) (STO:NORB B) Just Fell A Lot

The latest analyst coverage could presage a bad day for Nordisk Bergteknik AB (publ) (STO:NORB B), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

Following the latest downgrade, Nordisk Bergteknik's solo analyst currently expects revenues in 2023 to be kr3.7b, approximately in line with the last 12 months. Statutory earnings per share are supposed to dive 20% to kr2.09 in the same period. Previously, the analyst had been modelling revenues of kr4.1b and earnings per share (EPS) of kr2.64 in 2023. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a large cut to earnings per share numbers as well.

Check out our latest analysis for Nordisk Bergteknik

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Nordisk Bergteknik's revenue growth is expected to slow, with the forecast 0.9% annualised growth rate until the end of 2023 being well below the historical 52% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.9% per year. Factoring in the forecast slowdown in growth, it seems obvious that Nordisk Bergteknik is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like the analyst has become a lot more bearish on Nordisk Bergteknik, and their negativity could be grounds for caution.

Worse, Nordisk Bergteknik is labouring under a substantial debt burden, which - if today's forecasts prove accurate - the forecast downgrade could potentially exacerbate. You can learn more about our debt analysis for free on our platform here.

We also provide an overview of the Nordisk Bergteknik Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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

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.