Norva24 Group AB (Publ) Just Missed EPS By 18%: Here's What Analysts Think Will Happen Next

It's been a good week for Norva24 Group AB (Publ) (STO:NORVA) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.6% to kr29.00. Revenues were in line with forecasts, at kr770m, although statutory earnings per share came in 18% below what the analysts expected, at kr0.12 per share. 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. 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.

See our latest analysis for Norva24 Group

Taking into account the latest results, the consensus forecast from Norva24 Group's four analysts is for revenues of kr3.67b in 2024. This reflects a meaningful 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 6.8% to kr1.26. In the lead-up to this report, the analysts had been modelling revenues of kr3.43b and earnings per share (EPS) of kr1.09 in 2024. So it seems there's been a definite increase in optimism about Norva24 Group's future following the latest results, with a nice increase in the earnings per share forecasts in particular.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of kr33.75, suggesting that the forecast performance does not have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Norva24 Group at kr37.00 per share, while the most bearish prices it at kr30.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. We can infer from the latest estimates that forecasts expect a continuation of Norva24 Group'shistorical trends, as the 19% annualised revenue growth to the end of 2024 is roughly in line with the 22% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.8% annually. So it's pretty clear that Norva24 Group is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Norva24 Group following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.

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 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign 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.