Analyst Estimates: Here's What Brokers Think Of Kempower Oyj (HEL:KEMPOWR) After Its First-Quarter Report

Kempower Oyj (HEL:KEMPOWR) just released its latest quarterly report and things are not looking great. Unfortunately, Kempower Oyj delivered a serious earnings miss. Revenues of €44m were 18% below expectations, and statutory losses ballooned 57% to €0.11 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Following the latest results, Kempower Oyj's six analysts are now forecasting revenues of €268.0m in 2025. This would be a solid 19% improvement in revenue compared to the last 12 months. Per-share statutory losses are expected to explode, reaching €0.038 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €278.1m and earnings per share (EPS) of €0.0026 in 2025. There looks to have been a significant drop in sentiment regarding Kempower Oyj's prospects after these latest results, with a small dip in revenues and the analysts now forecasting a loss instead of a profit.

See our latest analysis for Kempower Oyj

There was no major change to the consensus price target of €15.67, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Kempower Oyj analyst has a price target of €20.00 per share, while the most pessimistic values it at €12.00. 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.

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. We would highlight that Kempower Oyj's revenue growth is expected to slow, with the forecast 27% annualised growth rate until the end of 2025 being well below the historical 41% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.6% per year. So it's pretty clear that, while Kempower Oyj's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest low-light for us was that the forecasts for Kempower Oyj dropped from profits to a loss next year. They also downgraded Kempower 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 €15.67, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Kempower Oyj analysts - 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 Kempower Oyj you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.