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Here's What Analysts Are Forecasting For Kitron ASA (OB:KIT) After Its Third-Quarter Results
It's been a sad week for Kitron ASA (OB:KIT), who've watched their investment drop 17% to kr83.20 in the week since the company reported its quarterly result. It was a credible result overall, with revenues of €267m and statutory earnings per share of €0.08 both in line with analyst estimates, showing that Kitron is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 most recent consensus for Kitron from six analysts is for revenues of €1.37b in 2027. If met, it would imply a substantial 28% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 34% to €0.47. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.33b and earnings per share (EPS) of €0.47 in 2027. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.
See our latest analysis for Kitron
Even though revenue forecasts increased, there was no change to the consensus price target of kr106, suggesting the analysts are focused on earnings as the driver of value creation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Kitron analyst has a price target of kr134 per share, while the most pessimistic values it at kr89.63. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Kitron's growth to accelerate, with the forecast 22% annualised growth to the end of 2027 ranking favourably alongside historical growth of 14% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Kitron is expected to grow much faster than its 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. 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. At Simply Wall St, we have a full range of analyst estimates for Kitron going out to 2028, and you can see them free on our platform here..
We also provide an overview of the Kitron Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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