Analysts Are Upgrading Íslandsbanki hf. (ICE:ISB) After Its Latest Results

It’s been a good week for Íslandsbanki hf. (ICE:ISB) shareholders as the company just released its latest full year results and shares are up 7.0% to SEK 128. It was quite a mixed result, with revenues exceeding expectations and hitting Kr59b. Statutory earnings fell 3.4% below analysts’ forecasts, reaching 12.19 crowns per share. Earnings are an important time for investors because they can track a company’s performance, look at what analysts are forecasting for the next year, and see if sentiment toward the company has changed. We thought readers would find it interesting to see the latest analysts’ (legal) post-earnings forecasts for the next year.

Check out our latest analysis for Íslandsbanki hf

Following the latest results, the four analysts at Íslandsbanki hf are now forecasting revenue of 67.0 billion Kr in 2023. This would be a significant revenue increase of 14% compared to the last 12 months. Earnings per share are expected to rise 15% to 14.01 kr. But before the latest gains, analysts had expected sales of Kr63.0 billion and earnings per share (EPS) of Kr12.76 in 2023. It looks like sentiment has lifted slightly following the recent results, with analysts becoming a little more optimistic on their sales and earnings forecasts.

Despite these upgrades, analysts have not made any major changes to their target price of 134Kr, suggesting that the higher estimates are unlikely to have a long-term impact on the stock’s value. The consensus price target is just an average of individual analyst targets, so it might be helpful to see how wide the range of underlying estimates are. The most optimistic analyst of Íslandsbanki hf has a price target of 160kr per share, while the most pessimistic one rates it at 120kr. Despite a relatively narrow grouping of estimates, it looks like analysts are fairly confident in their ratings, suggesting that Íslandsbanki hf is an easy company to forecast or that analysts are all using similar assumptions.

We can also look at these estimates in the context of the bigger picture, e.g. B. how the forecasts compare to past performance and whether the forecasts are more or less optimistic compared to other companies in the industry. Analysts definitely anticipate Íslandsbanki hf’s growth to accelerate, with projected annual growth of 14% through the end of 2023 comparing favorably to historical growth of 4.8% per year over the past five years. In contrast, our data suggests that other companies (with analyst coverage) in a similar industry are expected to post revenue growth of 6.5% per year. It seems evident that although growth prospects are better than in the recent past, analysts also expect Íslandsbanki hf to grow faster than the industry as a whole.

The final result

Most importantly, analysts have revised up their earnings per share estimates, suggesting that optimism about Íslandsbanki hf has increased significantly following these results. Fortunately, they’ve also raised their revenue estimates, and their projections suggest the business is expected to grow faster than the industry as a whole. The consensus price target held steady at Kr134 with the latest estimates not enough to impact their price targets.

Based on this train of thought, we believe the company’s long-term prospects are much more relevant than next year’s earnings. We have estimates – from several analysts at Íslandsbanki hf – up to 2024 and you can see them here for free on our platform.

However, you should always think about risks. We found a typical example 1 warning sign for Íslandsbanki hf you should be aware of this.

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This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.