Vår Energi AS (OB:VAR) has reported its annual results, falling short of the high expectations established by analysts. The company’s revenue reached US$7.4 billion, which is approximately 3.3% less than the anticipated figures. Additionally, the statutory earnings per share (EPS) of US$0.11 significantly missed projections, coming in 59% below what analysts had forecasted. This situation poses a critical moment for investors, allowing them to evaluate the company’s performance through its report, analyze expert predictions for the upcoming year, and determine if there have been any shifts in expectations for the business. In light of this, we have compiled the most recent post-earnings forecasts to understand what analysts anticipate for the next year.
### Vår Energi’s Earnings and Revenue Forecasts
Considering the latest financial outcomes, the consensus among Vår Energi’s 13 analysts suggests projected revenues of US$8.92 billion for 2025. This forecast indicates a substantial 21% increase compared to the revenue generated in the past year. Moreover, statutory earnings per share are expected to surge by 297% to US$0.42. Prior to the earnings announcement, analysts had anticipated revenues of US$8.99 billion and an EPS of US$0.43 for 2025. The analysts appear to maintain their perspectives on the business, as there has been no significant alteration to their predictions following the earnings report.
### Analyst Price Targets and Their Implications
Unsurprisingly, the consensus price target remains relatively stable at kr39.58. However, it’s important to delve deeper into these price targets by examining the range provided by analysts, as a broad spectrum of estimates may indicate varying views on potential outcomes for the company. The most optimistic analyst has set a target of kr43.54 per share, while the most cautious projects it at kr33.63. This disparity suggests that relying solely on consensus price targets may not be advisable since there is a significant difference in opinions regarding the company’s future performance.
### Growth Prospects Compared to Industry
To provide further context for these forecasts, it is useful to compare them with both past performance and the performance of other companies within the same sector. The latest projections indicate that Vår Energi is expected to experience a meaningful acceleration in growth, with a forecasted annual revenue growth rate of 21% through 2025, which is significantly higher than its historical growth rate of 12% per year over the last five years. In contrast, other companies in the industry are anticipated to face a revenue decline of 3.2% annually. This clearly highlights that Vår Energi is poised for a growth trajectory that outpaces the broader industry.
### Conclusion
The key takeaway from this analysis is that there has been no significant shift in sentiment among analysts, who continue to affirm that the company is performing in line with their earlier EPS estimates. On a positive note, there have been no adjustments to their revenue projections, and they predict that Vår Energi will outperform the broader industry. The consensus price target has remained unchanged at kr39.58, and the latest estimates have not influenced their target prices. With this in mind, it is crucial for investors to focus on the long-term growth prospects of the business. We have forecasts for Vår Energi extending to 2027, which can be accessed freely on our platform. Additionally, it is important to consider the three warning signs we have identified for Vår Energi, with one of them being particularly noteworthy.
