Nokian Renkaat Oyj Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next

Shareholders in Nokian Renkaat Oyj (HEL:TYRES) had a terrible week, as shares crashed 21% to €6.37 in the week since its latest full-year results. Things were not great overall, with a surprise (statutory) loss of €0.17 per share on revenues of €1.3b, even though the analysts had been expecting a profit. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Nokian Renkaat Oyj

Taking into account the latest results, the most recent consensus for Nokian Renkaat Oyj from nine analysts is for revenues of €1.43b in 2025. If met, it would imply a notable 11% increase on its revenue over the past 12 months. Nokian Renkaat Oyj is also expected to turn profitable, with statutory earnings of €0.14 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.49b and earnings per share (EPS) of €0.45 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

The consensus price target fell 9.4% to €6.98, with the weaker earnings outlook clearly leading valuation estimates. 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. There are some variant perceptions on Nokian Renkaat Oyj, with the most bullish analyst valuing it at €8.50 and the most bearish at €6.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. For example, we noticed that Nokian Renkaat Oyj's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 11% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 5.0% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.5% per year. So it looks like Nokian Renkaat Oyj is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Nokian Renkaat Oyj's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Nokian Renkaat Oyj going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Nokian Renkaat Oyj you should be aware of.

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