Stock Analysis

Enersense International Oyj Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Published
HLSE:ESENSE

A week ago, Enersense International Oyj (HEL:ESENSE) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. Statutory revenue of €112m and earnings of €0.19 both blasted past expectations, beating expectations by 22% and 280%, respectively, ahead of expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Enersense International Oyj

HLSE:ESENSE Earnings and Revenue Growth October 31st 2024

Taking into account the latest results, the current consensus, from the twin analysts covering Enersense International Oyj, is for revenues of €387.9m in 2025. This implies a noticeable 7.2% reduction in Enersense International Oyj's revenue over the past 12 months. Enersense International Oyj is also expected to turn profitable, with statutory earnings of €0.073 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €392.0m and earnings per share (EPS) of €0.064 in 2025. Although the revenue estimates have not really changed, we can see there's been a solid gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target rose 9.7% to €3.40, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 5.8% annualised decline to the end of 2025. That is a notable change from historical growth of 32% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.8% annually for the foreseeable future. It's pretty clear that Enersense International Oyj's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Enersense International Oyj's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Enersense International Oyj's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Enersense International Oyj that you need to be mindful of.

Valuation is complex, but we're here to simplify it.

Discover if Enersense International Oyj might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.