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

The investors in Exel Composites Oyj's (HEL:EXL1V) will be rubbing their hands together with glee today, after the share price leapt 21% to €0.35 in the week following its quarterly results. Results were roughly in line with estimates, with revenues of €27m and statutory earnings per share of €0.02. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Exel Composites Oyj

Taking into account the latest results, the most recent consensus for Exel Composites Oyj from dual analysts is for revenues of €103.8m in 2024. If met, it would imply a notable 12% increase on its revenue over the past 12 months. Exel Composites Oyj is also expected to turn profitable, with statutory earnings of €0.015 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €105.9m and earnings per share (EPS) of €0.01 in 2024. Although the analysts have lowered their revenue forecasts, they've also made a great increase in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.

The consensus price target fell 77% to €0.39, with the analysts signalling that the weaker revenue outlook was a more powerful indicator than the upgraded EPS forecasts.

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. The analysts are definitely expecting Exel Composites Oyj's growth to accelerate, with the forecast 26% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.5% 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Exel Composites Oyj's earnings potential next year. They also downgraded Exel Composites Oyj's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. 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.

Before you take the next step you should know about the 3 warning signs for Exel Composites Oyj (2 are significant!) that we have uncovered.

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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.