Lamor Corporation Oyj Reported A Surprise Loss, And Analysts Have Updated Their Forecasts

The quarterly results for Lamor Corporation Oyj (HEL:LAMOR) were released last week, making it a good time to revisit its performance. It was a pretty bad result overall, with revenues coming in 21% lower than the analysts predicted. Statutory earnings correspondingly nosedived, with Lamor Corporation Oyj reporting a loss of €0.02 per share, where the analysts were expecting a profit. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Lamor Corporation Oyj

Taking into account the latest results, the current consensus from Lamor Corporation Oyj's two analysts is for revenues of €121.7m in 2024. This would reflect an okay 4.1% increase on its revenue over the past 12 months. Earnings are expected to improve, with Lamor Corporation Oyj forecast to report a statutory profit of €0.10 per share. In the lead-up to this report, the analysts had been modelling revenues of €122.1m and earnings per share (EPS) of €0.18 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

The consensus price target held steady at €2.70, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

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. We would highlight that Lamor Corporation Oyj's revenue growth is expected to slow, with the forecast 8.3% annualised growth rate until the end of 2024 being well below the historical 24% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.0% per year. So it's pretty clear that, while Lamor Corporation Oyj's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Lamor Corporation Oyj. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

It is also worth noting that we have found 2 warning signs for Lamor Corporation Oyj (1 doesn't sit too well with us!) that you need to take into consideration.

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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.

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