Nova Ljubljanska Banka d.d. (LJSE:NLBR) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

It's been a good week for Nova Ljubljanska Banka d.d. (LJSE:NLBR) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.4% to €73.80. The results were positive, with revenue coming in at €242m, beating analyst expectations by 2.6%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Nova Ljubljanska Banka d.d

Taking into account the latest results, the most recent consensus for Nova Ljubljanska Banka d.d from eight analysts is for revenues of €942.4m in 2023 which, if met, would be a reasonable 3.0% increase on its sales over the past 12 months. Statutory earnings per share are predicted to jump 21% to €20.94. In the lead-up to this report, the analysts had been modelling revenues of €908.8m and earnings per share (EPS) of €15.16 in 2023. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a very substantial lift in earnings per share in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of €117, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Nova Ljubljanska Banka d.d at €158 per share, while the most bearish prices it at €96.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Nova Ljubljanska Banka d.d's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 4.0% growth on an annualised basis. This is compared to a historical growth rate of 9.9% over the past five years. Compare this to the 215 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.3% per year. So it's pretty clear that, while Nova Ljubljanska Banka d.d's revenue growth is expected to slow, it's expected to grow roughly in line with the 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 Nova Ljubljanska Banka d.d following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Nova Ljubljanska Banka d.d. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Nova Ljubljanska Banka d.d going out to 2025, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for Nova Ljubljanska Banka d.d you should know about.

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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.