Lamor Corporation Oyj Just Missed EPS By 47%: Here's What Analysts Think Will Happen Next

The yearly results for Lamor Corporation Oyj (HEL:LAMOR) were released last week, making it a good time to revisit its performance. It looks like a pretty bad result, all things considered. Although revenues of €123m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 47% to hit €0.09 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Lamor Corporation Oyj

Taking into account the latest results, Lamor Corporation Oyj's twin analysts currently expect revenues in 2024 to be €123.5m, approximately in line with the last 12 months. Statutory earnings per share are predicted to shoot up 76% to €0.17. In the lead-up to this report, the analysts had been modelling revenues of €119.0m and earnings per share (EPS) of €0.26 in 2024. So it's pretty clear the analysts have mixed opinions on Lamor Corporation Oyj after the latest results; even though they upped their revenue numbers, it came at the cost of a pretty serious reduction to per-share earnings expectations.

The analysts also cut Lamor Corporation Oyj's price target 7.6% to €3.05, implying that lower forecast earnings are expected to have a more negative impact than can be offset by the increase in revenue.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lamor Corporation Oyj's past performance and to peers in the same industry. We would highlight that Lamor Corporation Oyj's revenue growth is expected to slow, with the forecast 0.8% annualised growth rate until the end of 2024 being well below the historical 22% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.0% annually. Factoring in the forecast slowdown in growth, it seems obvious that Lamor Corporation 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 Lamor Corporation Oyj. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You still need to take note of risks, for example - Lamor Corporation Oyj has 4 warning signs (and 2 which don't sit too well with us) we think 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.