Wärtsilä Oyj Abp Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

It's been a mediocre week for Wärtsilä Oyj Abp (HEL:WRT1V) shareholders, with the stock dropping 11% to €17.95 in the week since its latest quarterly results. It looks like a credible result overall - although revenues of €1.7b were in line with what the analysts predicted, Wärtsilä Oyj Abp surprised by delivering a statutory profit of €0.24 per share, a notable 15% above 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Wärtsilä Oyj Abp

Taking into account the latest results, the consensus forecast from Wärtsilä Oyj Abp's 16 analysts is for revenues of €7.29b in 2025. This reflects a decent 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 30% to €0.96. Yet prior to the latest earnings, the analysts had been anticipated revenues of €7.39b and earnings per share (EPS) of €0.98 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €17.82. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Wärtsilä Oyj Abp analyst has a price target of €22.50 per share, while the most pessimistic values it at €10.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wärtsilä Oyj Abp's past performance and to peers in the same industry. It's clear from the latest estimates that Wärtsilä Oyj Abp's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.7% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Wärtsilä Oyj Abp to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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. The consensus price target held steady at €17.82, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Wärtsilä Oyj Abp. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Wärtsilä Oyj Abp analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Wärtsilä Oyj Abp that you need to be mindful 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.