Kempower Oyj (HEL:KEMPOWR) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

Shareholders will be ecstatic, with their stake up 24% over the past week following Kempower Oyj's (HEL:KEMPOWR) latest full-year results. Revenues came in at €224m, in line with forecasts and the company reported a statutory loss of €0.42 per share, roughly in line with expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Kempower Oyj

Taking into account the latest results, the current consensus from Kempower Oyj's five analysts is for revenues of €265.5m in 2025. This would reflect a solid 19% increase on its revenue over the past 12 months. Per-share statutory losses are expected to explode, reaching €0.013 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €285.2m and earnings per share (EPS) of €0.05 in 2025. The analysts have made an abrupt about-face on Kempower Oyj, administering a minor downgrade to to revenue forecasts and slashing the earnings outlook from a profit to loss.

The average price target was broadly unchanged at €15.60, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Kempower Oyj, with the most bullish analyst valuing it at €20.00 and the most bearish at €11.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's pretty clear that there is an expectation that Kempower Oyj's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 47% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.7% annually. 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 most important thing to take away is that the analysts are expecting Kempower Oyj to become unprofitable 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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.