The third-quarter results for SpareBank 1 Sør-Norge ASA (OB:SB1NO) were released last week, making it a good time to revisit its performance. SpareBank 1 Sør-Norge reported kr3.5b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr4.51 beat expectations, being 2.9% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on SpareBank 1 Sør-Norge after the latest results.
Following the latest results, SpareBank 1 Sør-Norge's five analysts are now forecasting revenues of kr14.2b in 2027. This would be a modest 5.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 9.0% to kr18.61. In the lead-up to this report, the analysts had been modelling revenues of kr14.3b and earnings per share (EPS) of kr18.63 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for SpareBank 1 Sør-Norge
There were no changes to revenue or earnings estimates or the price target of kr223, suggesting that the company has met expectations in its recent result. 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 SpareBank 1 Sør-Norge at kr245 per share, while the most bearish prices it at kr195. This is a very narrow spread of estimates, implying either that SpareBank 1 Sør-Norge is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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. It's pretty clear that there is an expectation that SpareBank 1 Sør-Norge's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 4.6% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Compare this to the 35 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.6% per year. So it's pretty clear that, while SpareBank 1 Sør-Norge's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate 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.
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 SpareBank 1 Sør-Norge going out to 2028, and you can see them free on our platform here..
It might also be worth considering whether SpareBank 1 Sør-Norge's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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