Wärtsilä Oyj Abp (HEL:WRT1V) Just Released Its Annual Earnings: Here's What Analysts Think

Wärtsilä Oyj Abp (HEL:WRT1V) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Wärtsilä Oyj Abp reported €6.9b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €1.06 beat expectations, being 3.0% higher than what the analysts 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Wärtsilä Oyj Abp after the latest results.

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Taking into account the latest results, Wärtsilä Oyj Abp's 13 analysts currently expect revenues in 2026 to be €6.93b, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 8.1% to €1.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of €7.26b and earnings per share (EPS) of €1.14 in 2026. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

View our latest analysis for Wärtsilä Oyj Abp

The average price target was steady at €28.74even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. 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 Wärtsilä Oyj Abp, with the most bullish analyst valuing it at €40.00 and the most bearish at €16.00 per share. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Wärtsilä Oyj Abp's revenue growth is expected to slow, with the forecast 0.2% annualised growth rate until the end of 2026 being well below the historical 9.0% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.3% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Wärtsilä Oyj Abp.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. With that said, earnings are more important to the long-term value of the business. The consensus price target held steady at €28.74, 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. At Simply Wall St, we have a full range of analyst estimates for Wärtsilä Oyj Abp going out to 2028, and you can see them free on our platform here..

We also provide an overview of the Wärtsilä Oyj Abp Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.