Kreate Group Oyj Just Missed Earnings - But Analysts Have Updated Their Models

Last week saw the newest second-quarter earnings release from Kreate Group Oyj (HEL:KREATE), an important milestone in the company's journey to build a stronger business. Kreate Group Oyj beat revenue expectations by 6.4%, at €74m. Statutory earnings per share (EPS) came in at €0.14, some 6.7% short of analyst estimates. Following the result, the analyst has 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 estimate to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Kreate Group Oyj's sole analyst is for revenues of €299.8m in 2025. This would reflect an okay 7.5% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 22% to €0.67. In the lead-up to this report, the analyst had been modelling revenues of €295.3m and earnings per share (EPS) of €0.60 in 2025. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analyst has become more bullish after the latest result.

Check out our latest analysis for Kreate Group Oyj

The analyst has been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 7.0% to €9.20.

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. The analyst is definitely expecting Kreate Group Oyj's growth to accelerate, with the forecast 15% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.4% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Kreate Group Oyj is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Kreate Group Oyj following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Kreate Group Oyj going out as far as 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Kreate Group Oyj that you should be aware of.

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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.