Enento Group Oyj Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders might have noticed that Enento Group Oyj (HEL:ENENTO) filed its full-year result this time last week. The early response was not positive, with shares down 4.5% to €20.05 in the past week. It was not a great result overall. While revenues of €168m were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 19% to hit €0.72 per share. 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'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 Enento Group Oyj

Following last week's earnings report, Enento Group Oyj's three analysts are forecasting 2023 revenues to be €168.2m, approximately in line with the last 12 months. Per-share earnings are expected to bounce 42% to €1.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of €171.5m and earnings per share (EPS) of €1.18 in 2023. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

The consensus price target held steady at €26.83, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values Enento Group Oyj at €32.00 per share, while the most bearish prices it at €22.50. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 Enento Group Oyj's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 0.2% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that Enento Group Oyj is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Enento Group Oyj. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at €26.83, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Enento Group Oyj going out to 2025, and you can see them free on our platform here..

Even so, be aware that Enento Group Oyj is showing 3 warning signs in our investment analysis , you should know about...

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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.