Eezy Oyj (HEL:EEZY) investors will be delighted, with the company turning in some strong numbers with its latest results. Eezy Oyj delivered a significant beat to revenue and earnings per share (EPS) expectations, with sales hitting €53m, some 13% above indicated. Statutory EPS were €0.10, an impressive 233% ahead of forecasts. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the three analysts covering Eezy Oyj are now predicting revenues of €237.7m in 2021. If met, this would reflect a decent 12% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 163% to €0.37. Yet prior to the latest earnings, the analysts had been anticipated revenues of €222.9m and earnings per share (EPS) of €0.34 in 2021. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
It will come as no surprise to learn that the analysts have increased their price target for Eezy Oyj 22% to €5.93on the back of these upgrades. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Eezy Oyj, with the most bullish analyst valuing it at €7.00 and the most bearish at €5.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. We would highlight that Eezy Oyj's revenue growth is expected to slow, with forecast 12% increase next year well below the historical 49%p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.8% next year. So it's pretty clear that, while Eezy Oyj's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Eezy Oyj's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Eezy Oyj analysts - going out to 2023, and you can see them free on our platform here.
Before you take the next step you should know about the 3 warning signs for Eezy Oyj that we have uncovered.
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