Norwegian Air Shuttle ASA Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts
Shareholders might have noticed that Norwegian Air Shuttle ASA (OB:NAS) filed its second-quarter result this time last week. The early response was not positive, with shares down 6.0% to kr12.87 in the past week. Revenues fell 2.3% short of expectations, at kr10b. Earnings correspondingly dipped, with Norwegian Air Shuttle reporting a statutory loss of kr0.53 per share, whereas the analysts had previously modelled a profit in this period. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Norwegian Air Shuttle's five analysts is for revenues of kr39.3b in 2026. This would reflect a modest 3.1% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to nosedive 43% to kr0.84 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr40.0b and earnings per share (EPS) of kr1.84 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.
View our latest analysis for Norwegian Air Shuttle
The consensus price target held steady at kr16.50, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Norwegian Air Shuttle at kr20.00 per share, while the most bearish prices it at kr13.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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. It's pretty clear that there is an expectation that Norwegian Air Shuttle's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 6.4% growth on an annualised basis. This is compared to a historical growth rate of 33% over the past five years. Compare this to the 13 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.2% per year. So it's pretty clear that, while Norwegian Air Shuttle'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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at kr16.50, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Norwegian Air Shuttle. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Norwegian Air Shuttle analysts - going out to 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Norwegian Air Shuttle that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.