Norva24 Group AB (Publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Norva24 Group AB (Publ) (STO:NORVA) shareholders are probably feeling a little disappointed, since its shares fell 4.8% to kr24.80 in the week after its latest annual results. It was not a great result overall. While revenues of kr3.6b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 12% to hit kr0.96 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Norva24 Group after the latest results.

Check out our latest analysis for Norva24 Group

Taking into account the latest results, the most recent consensus for Norva24 Group from five analysts is for revenues of kr3.96b in 2025. If met, it would imply a meaningful 9.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 41% to kr1.37. In the lead-up to this report, the analysts had been modelling revenues of kr3.95b and earnings per share (EPS) of kr1.44 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at kr34.60, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. Currently, the most bullish analyst values Norva24 Group at kr37.00 per share, while the most bearish prices it at kr30.00. This is a very narrow spread of estimates, implying either that Norva24 Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Norva24 Group's revenue growth is expected to slow, with the forecast 9.0% annualised growth rate until the end of 2025 being well below the historical 19% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.5% per year. Even after the forecast slowdown in growth, it seems obvious that Norva24 Group is also expected to grow faster than 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 Norva24 Group. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at kr34.60, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Norva24 Group going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Norva24 Group that we have uncovered.

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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.