Zaptec ASA Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

A week ago, Zaptec ASA (OB:ZAP) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of kr512m arriving 4.2% ahead of forecasts. Statutory earnings per share (EPS) were kr0.39, 5.7% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Zaptec after the latest results.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Taking into account the latest results, the consensus forecast from Zaptec's three analysts is for revenues of kr2.45b in 2027. This reflects a major 28% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 63% to kr2.66. Before this earnings report, the analysts had been forecasting revenues of kr2.45b and earnings per share (EPS) of kr2.66 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Zaptec

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr65.67. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Zaptec analyst has a price target of kr70.00 per share, while the most pessimistic values it at kr62.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Zaptec's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Zaptec'shistorical trends, as the 22% annualised revenue growth to the end of 2027 is roughly in line with the 23% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.9% annually. So although Zaptec is expected to maintain its revenue growth rate, it's definitely expected to grow faster 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Zaptec going out to 2028, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Zaptec , and understanding it should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.