Relais Group Oyj Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a good week for Relais Group Oyj (HEL:RELAIS) shareholders, because the company has just released its latest first-quarter results, and the shares gained 5.5% to €15.30. It looks like a credible result overall - although revenues of €83m were what the analysts expected, Relais Group Oyj surprised by delivering a (statutory) profit of €0.31 per share, an impressive 22% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Following the latest results, Relais Group Oyj's five analysts are now forecasting revenues of €367.6m in 2025. This would be a notable 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 9.1% to €1.24. In the lead-up to this report, the analysts had been modelling revenues of €344.1m and earnings per share (EPS) of €1.14 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

View our latest analysis for Relais Group Oyj

Despite these upgrades,the analysts have not made any major changes to their price target of €17.45, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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 Relais Group Oyj, with the most bullish analyst valuing it at €17.85 and the most bearish at €17.00 per share. This is a very narrow spread of estimates, implying either that Relais Group Oyj is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 19% growth on an annualised basis. That is in line with its 19% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.8% annually. So although Relais Group Oyj is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Relais Group Oyj following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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 in mind, we wouldn't be too quick to come to a conclusion on Relais Group Oyj. Long-term earnings power is much more important than next year's profits. We have forecasts for Relais Group Oyj going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Relais Group Oyj that 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.