Shareholders of Sentia ASA (OB:SNTIA) will be pleased this week, given that the stock price is up 11% to kr91.60 following its latest third-quarter results. Revenues were kr3.2b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of kr1.74 were also better than expected, beating analyst predictions by 19%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Sentia’s three analysts is for revenues of kr14.1b in 2027. This reflects a decent 9.3% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be kr6.36, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of kr13.8b and earnings per share (EPS) of kr6.13 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
View our latest analysis for Sentia
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of kr97.00, suggesting that the forecast performance does not have a long term impact on the company’s valuation. 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. The most optimistic Sentia analyst has a price target of kr105 per share, while the most pessimistic values it at kr86.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It’s clear from the latest estimates that Sentia’s rate of growth is expected to accelerate meaningfully, with the forecast 7.3% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 4.9% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sentia to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sentia’s earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster 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.
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 Sentia analysts – going out to 2028, and you can see them free on our platform here.
You can also see our analysis of Sentia’s Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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