Etteplan Oyj Just Missed Earnings - But Analysts Have Updated Their Models

As you might know, Etteplan Oyj (HEL:ETTE) last week released its latest first-quarter, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with €95m revenue coming in 5.3% lower than what the analystsexpected. Statutory earnings per share (EPS) of €0.09 missed the mark badly, arriving some 38% below what was expected. 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.

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After the latest results, the three analysts covering Etteplan Oyj are now predicting revenues of €370.7m in 2025. If met, this would reflect a credible 3.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 59% to €0.55. Yet prior to the latest earnings, the analysts had been anticipated revenues of €377.5m and earnings per share (EPS) of €0.61 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for Etteplan Oyj

It might be a surprise to learn that the consensus price target was broadly unchanged at €11.33, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Etteplan Oyj at €12.00 per share, while the most bearish prices it at €10.50. This is a very narrow spread of estimates, implying either that Etteplan Oyj is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Etteplan Oyj's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.4% growth on an annualised basis. This is compared to a historical growth rate of 7.9% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.6% annually. So it's pretty clear that, while Etteplan Oyj's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at €11.33, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Etteplan Oyj going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Etteplan Oyj has 3 warning signs we think 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.