Raute Oyj (HEL:RAUTE) Analysts Are Pretty Bullish On The Stock After Recent Results

Raute Oyj (HEL:RAUTE) shareholders are probably feeling a little disappointed, since its shares fell 4.4% to €16.40 in the week after its latest quarterly results. The result was positive overall - although revenues of €52m were in line with what the analysts predicted, Raute Oyj surprised by delivering a statutory profit of €0.66 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the consensus from Raute Oyj's two analysts is for revenues of €201.2m in 2025, which would reflect a measurable 5.0% decline in revenue compared to the last year of performance. Per-share earnings are expected to accumulate 5.2% to €2.64. In the lead-up to this report, the analysts had been modelling revenues of €201.5m and earnings per share (EPS) of €2.24 in 2025. Although the revenue estimates have not really changed, we can see there's been a solid gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

Check out our latest analysis for Raute Oyj

The consensus price target rose 12% to €19.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 6.7% by the end of 2025. This indicates a significant reduction from annual growth of 10% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Raute Oyj is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Raute Oyj's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Raute Oyj. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

It is also worth noting that we have found 2 warning signs for Raute Oyj (1 shouldn't be ignored!) that you need to take into consideration.

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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.