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It's been a good week for NORMA Group SE (ETR:NOEJ) shareholders, because the company has just released its latest third-quarter results, and the shares gained 4.1% to €16.36. Sales of €319m surpassed estimates by 5.6%, although statutory earnings per share missed badly, coming in 31% below expectations at €0.29 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on NORMA Group after the latest results.
Check out our latest analysis for NORMA Group
After the latest results, the ten analysts covering NORMA Group are now predicting revenues of €1.30b in 2023. If met, this would reflect a meaningful 8.1% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 62% to €2.08. In the lead-up to this report, the analysts had been modelling revenues of €1.29b and earnings per share (EPS) of €2.16 in 2023. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
The consensus price target held steady at €25.18, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values NORMA Group at €38.00 per share, while the most bearish prices it at €18.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. The analysts are definitely expecting NORMA Group's growth to accelerate, with the forecast 6.4% annualised growth to the end of 2023 ranking favourably alongside historical growth of 1.5% 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 4.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect NORMA Group to grow faster than the wider industry.