Sparebanken Møre (OB:MORG) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 7.8% to hit kr606m. Sparebanken Møre also reported a statutory profit of kr2.57, which was an impressive 30% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following last week's earnings report, Sparebanken Møre's three analysts are forecasting 2026 revenues to be kr2.32b, approximately in line with the last 12 months. Statutory earnings per share are expected to dive 39% to kr9.20 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr2.30b and earnings per share (EPS) of kr8.37 in 2026. So the consensus seems to have become somewhat more optimistic on Sparebanken Møre's earnings potential following these results.
Check out our latest analysis for Sparebanken Møre
There's been no major changes to the consensus price target of kr118, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock'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. There are some variant perceptions on Sparebanken Møre, with the most bullish analyst valuing it at kr135 and the most bearish at kr105 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sparebanken Møre is an easy business to forecast or the the analysts are all using similar 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 would highlight that revenue is expected to reverse, with a forecast 2.9% annualised decline to the end of 2026. That is a notable change from historical growth of 11% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.3% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Sparebanken Møre is expected to lag the wider 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 Sparebanken Møre following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at kr118, 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. We have estimates - from multiple Sparebanken Møre analysts - going out to 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Sparebanken Møre you should be aware 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.