Enento Group Oyj Just Missed EPS By 18%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Enento Group Oyj (HEL:ENENTO) released its full-year result to the market. The early response was not positive, with shares down 2.6% to €16.54 in the past week. Revenues were in line with forecasts, at €150m, although statutory earnings per share came in 18% below what the analysts expected, at €0.51 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Enento Group Oyj

Following last week's earnings report, Enento Group Oyj's four analysts are forecasting 2025 revenues to be €151.9m, approximately in line with the last 12 months. Per-share earnings are expected to soar 59% to €0.81. Before this earnings report, the analysts had been forecasting revenues of €154.9m and earnings per share (EPS) of €0.91 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

The average price target fell 5.3% to €21.00, with reduced earnings forecasts clearly tied to a lower valuation estimate. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Enento Group Oyj, with the most bullish analyst valuing it at €27.00 and the most bearish at €17.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Enento Group Oyj shareholders.

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 clear from the latest estimates that Enento Group Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 1.0% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 0.7% 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 4.3% per year. So it's clear that despite the acceleration in growth, Enento Group Oyj is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Enento Group Oyj's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Enento Group Oyj going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Enento Group Oyj (1 is significant!) that you should be aware 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.