Administer Oyj (HEL:ADMIN) Released Earnings Last Week And Analysts Lifted Their Price Target To €3.10

Investors in Administer Oyj (HEL:ADMIN) had a good week, as its shares rose 9.2% to close at €2.62 following the release of its half-year results. It was a credible result overall, with revenues of €38m and statutory earnings per share of €0.04 both in line with analyst estimates, showing that Administer Oyj is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Administer Oyj

Following last week's earnings report, Administer Oyj's two analysts are forecasting 2024 revenues to be €76.1m, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been forecasting revenues of €77.1m and losses of €0.095 per share in 2024. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

Additionally, the consensus price target for Administer Oyj rose 13% to €3.10, showing a clear increase in optimism from the the analysts involved.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Administer Oyj's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.2% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that Administer Oyj is also expected to grow slower than other industry participants.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Administer Oyj's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

We have estimates for Administer Oyj from its two analysts 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 Administer Oyj 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.