Exel Composites Oyj (HEL:EXL1V) Just Reported Earnings, And Analysts Cut Their Target Price

As you might know, Exel Composites Oyj (HEL:EXL1V) last week released its latest full-year, and things did not turn out so great for shareholders. Revenues missed expectations somewhat, coming in at €97m and leading to a corresponding blowout in statutory losses. The loss per share was €0.77, some 14% larger than the analysts forecast. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Exel Composites Oyj

Taking into account the latest results, the current consensus from Exel Composites Oyj's twin analysts is for revenues of €106.0m in 2024. This would reflect a meaningful 9.4% increase on its revenue over the past 12 months. Exel Composites Oyj is also expected to turn profitable, with statutory earnings of €0.05 per share. Before this earnings report, the analysts had been forecasting revenues of €111.4m and earnings per share (EPS) of €0.17 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 15% to €2.20.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Exel Composites Oyj's past performance and to peers in the same industry. The analysts are definitely expecting Exel Composites Oyj's growth to accelerate, with the forecast 9.4% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Exel Composites Oyj to grow faster than the wider industry.

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 Exel Composites Oyj's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

It is also worth noting that we have found 2 warning signs for Exel Composites Oyj (1 is a bit unpleasant!) that you need to take into consideration.

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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.