Stock Analysis

Exel Composites Oyj Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts

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HLSE:EXL1V

Exel Composites Oyj (HEL:EXL1V) shareholders are probably feeling a little disappointed, since its shares fell 8.4% to €0.34 in the week after its latest third-quarter results. It was a pretty negative result overall, with revenues of €25m missing analyst predictions by 4.0%. Worse, the business reported a statutory loss of €0.02 per share, a substantial decline on analyst expectations of a profit. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Exel Composites Oyj

HLSE:EXL1V Earnings and Revenue Growth November 3rd 2024

Taking into account the latest results, the current consensus from Exel Composites Oyj's twin analysts is for revenues of €109.1m in 2025. This would reflect a meaningful 13% increase on its revenue over the past 12 months. Exel Composites Oyj is also expected to turn profitable, with statutory earnings of €0.02 per share. In the lead-up to this report, the analysts had been modelling revenues of €111.4m and earnings per share (EPS) of €0.035 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

Despite the cuts to forecast earnings, there was no real change to the €0.38 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Exel Composites Oyj is forecast to grow faster in the future than it has in the past, with revenues expected to display 10% annualised growth until the end of 2025. If achieved, this would be a much better result than the 0.5% annual decline 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 3.6% per year. So it looks like Exel Composites 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. They also downgraded Exel Composites Oyj's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at €0.38, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Exel Composites Oyj. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Exel Composites Oyj going out as far as 2026, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Exel Composites Oyj (including 1 which is potentially serious) .

Valuation is complex, but we're here to simplify it.

Discover if Exel Composites Oyj might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.