Norva24 Group AB (Publ) Just Missed EPS By 21%: 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 5.4% to kr30.20. Revenue of kr938m surpassed estimates by 2.1%, although statutory earnings per share missed badly, coming in 21% below expectations at kr0.30 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Norva24 Group

Following the latest results, Norva24 Group's five analysts are now forecasting revenues of kr3.67b in 2024. This would be a decent 9.4% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be kr1.20, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr3.66b and earnings per share (EPS) of kr1.25 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at kr36.20, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on Norva24 Group, with the most bullish analyst valuing it at kr39.00 and the most bearish at kr31.00 per share. 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.

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. We can infer from the latest estimates that forecasts expect a continuation of Norva24 Group'shistorical trends, as the 20% annualised revenue growth to the end of 2024 is roughly in line with the 18% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.7% annually. So it's pretty clear that Norva24 Group is forecast to grow substantially faster than its 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 kr36.20, with the latest estimates not enough to have an impact on their price targets.

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 Norva24 Group going out to 2026, and you can see them 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 Norva24 Group that you need to be mindful of.

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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.