Selvaag Bolig ASA Just Missed Earnings - But Analysts Have Updated Their Models
Selvaag Bolig ASA (OB:SBO) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Statutory earnings per share disappointed, coming in -29% short of expectations, at kr0.60. Fortunately revenue performance was a lot stronger at kr1.6b arriving 17% ahead of predictions. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus, from the dual analysts covering Selvaag Bolig, is for revenues of kr3.87b in 2027. This implies a definite 8.8% reduction in Selvaag Bolig's revenue over the past 12 months. Per-share earnings are expected to swell 15% to kr3.12. In the lead-up to this report, the analysts had been modelling revenues of kr3.87b and earnings per share (EPS) of kr3.12 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.
Check out our latest analysis for Selvaag Bolig
It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr38.50.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Selvaag Bolig's past performance and to peers in the same industry. We would also point out that the forecast 7.1% annualised revenue decline to the end of 2027 is roughly in line with the historical trend, which saw revenues shrink 8.4% 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 0.4% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Selvaag Bolig to suffer worse than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Selvaag Bolig's revenue is expected to 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.
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 analyst estimates for Selvaag Bolig going out as far as 2028, and you can see them free on our platform here.
You still need to take note of risks, for example - Selvaag Bolig has 1 warning sign we think you should be aware of.
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