Norconsult ASA (OB:NORCO) shareholders are probably feeling a little disappointed, since its shares fell 8.5% to kr35.30 in the week after its latest quarterly results. The result was positive overall - although revenues of kr2.3b were in line with what the analysts predicted, Norconsult surprised by delivering a statutory profit of kr0.38 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the recent earnings report, the consensus from five analysts covering Norconsult is for revenues of kr12.0b in 2027. This implies a noticeable 4.5% decline in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 35% to kr2.57. Before this earnings report, the analysts had been forecasting revenues of kr12.0b and earnings per share (EPS) of kr2.62 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Norconsult
It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr45.40. 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. Currently, the most bullish analyst values Norconsult at kr50.00 per share, while the most bearish prices it at kr43.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 3.6% annualised decline to the end of 2027. That is a notable change from historical growth of 10% 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 5.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Norconsult is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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 kr45.40, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Norconsult going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Norconsult that you need to take into consideration.
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