Shareholders of Ørsted A/S (CPH:ORSTED) will be pleased this week, given that the stock price is up 13% to kr.149 following its latest third-quarter results. Revenues of kr.21b beat estimates by a substantial 63% margin, but unfortunately Ørsted fell substantially short of earnings forecasts, reporting a statutory loss of kr.0.70 per share, where the analysts had previously predicted a profit. 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. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the consensus from Ørsted’s 20 analysts is for revenues of kr.89.1b in 2027, which would reflect a noticeable 3.8% decline in revenue compared to the last year of performance. Ørsted is also expected to turn profitable, with statutory earnings of kr.9.41 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr.87.5b and earnings per share (EPS) of kr.9.27 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 Ørsted
It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr.172. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Ørsted at kr.230 per share, while the most bearish prices it at kr.150. This shows there is still a bit of diversity in estimates, but analysts don’t appear to be totally split on the stock as though it might be a success or failure situation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 3.1% annualised revenue decline to the end of 2027 is better than the historical trend, which saw revenues shrink 4.3% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.2% per year. So it’s pretty clear that, while it does have declining revenues, the analysts also expect Ørsted to suffer worse than 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. 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 Ørsted. Long-term earnings power is much more important than next year’s profits. We have forecasts for Ørsted going out to 2028, and you can see them free on our platform here.
It might also be worth considering whether Ørsted’s debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
