Shareholders of Norbit ASA (OB:NORBT) will be pleased this week, given that the stock price is up 11% to kr179 following its latest third-quarter results. It was not a great result overall. Although revenues beat expectations, hitting kr677m, statutory earnings missed analyst forecasts by 14%, coming in at just kr1.12 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the four analysts covering Norbit are now predicting revenues of kr3.64b in 2027. If met, this would reflect a substantial 20% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 29% to kr9.47. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr3.63b and earnings per share (EPS) of kr9.56 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 Norbit
The analysts reconfirmed their price target of kr220, showing that the business is executing well and in line with expectations. That’s not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Norbit analyst has a price target of kr245 per share, while the most pessimistic values it at kr184. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Norbit’s revenue growth is expected to slow, with the forecast 16% annualised growth rate until the end of 2027 being well below the historical 26% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 14% annually. So it’s pretty clear that, while Norbit’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 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at kr220, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year’s earnings. We have estimates – from multiple Norbit analysts – going out to 2028, and you can see them free on our platform here.
Don’t forget that there may still be risks. For instance, we’ve identified 1 warning sign for Norbit that you should be aware of.
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