Analysts Are Updating Their Kempower Oyj (HEL:KEMPOWR) Estimates After Its Second-Quarter Results

Kempower Oyj (HEL:KEMPOWR) missed earnings with its latest second-quarter results, disappointing overly-optimistic forecasters. Revenues missed expectations somewhat, coming in at €62m, but statutory earnings fell catastrophically short, with a loss of €0.05 some 102% larger than what the analysts had predicted. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, Kempower Oyj's seven analysts are now forecasting revenues of €264.1m in 2025. This would be a decent 15% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 78% to €0.062. Before this earnings announcement, the analysts had been modelling revenues of €263.8m and losses of €0.075 per share in 2025. Although the revenue estimates have not really changed Kempower Oyj'sfuture looks a little different to the past, with a cut to the loss per share forecasts in particular.

Check out our latest analysis for Kempower Oyj

The average price target held steady at €15.94, seeming to indicate that business is performing in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Kempower Oyj, with the most bullish analyst valuing it at €20.00 and the most bearish at €10.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 32% growth on an annualised basis. That is in line with its 31% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.5% annually. So it's pretty clear that Kempower Oyj is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at €15.94, 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.

And what about risks? Every company has them, and we've spotted 1 warning sign for Kempower Oyj you should know about.

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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.