Raute Oyj Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Raute Oyj (HEL:RAUTE) shareholders are probably feeling a little disappointed, since its shares fell 6.6% to €10.65 in the week after its latest annual results. Statutory earnings per share fell badly short of expectations, coming in at €0.22, some 37% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at €146m. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Raute Oyj

Taking into account the latest results, the current consensus from Raute Oyj's two analysts is for revenues of €180.6m in 2024. This would reflect a major 24% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 322% to €0.93. Before this earnings report, the analysts had been forecasting revenues of €179.1m and earnings per share (EPS) of €1.04 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at €12.75, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Raute Oyj's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Raute Oyj is forecast to grow faster in the future than it has in the past, with revenues expected to display 24% annualised growth until the end of 2024. If achieved, this would be a much better result than the 1.9% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.0% annually. So it looks like Raute 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. 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. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Raute Oyj going out as far as 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Raute Oyj that we have uncovered.

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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.