€10.00: That's What Analysts Think Lassila & Tikanoja Oyj (HEL:LAT1V) Is Worth After Its Latest Results

It's been a mediocre week for Lassila & Tikanoja Oyj (HEL:LAT1V) shareholders, with the stock dropping 12% to €8.93 in the week since its latest annual results. It looks like the results were a bit of a negative overall. While revenues of €802m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.0% to hit €0.79 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Lassila & Tikanoja Oyj

Following last week's earnings report, Lassila & Tikanoja Oyj's dual analysts are forecasting 2024 revenues to be €800.3m, approximately in line with the last 12 months. Statutory per-share earnings are expected to be €0.78, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €823.3m and earnings per share (EPS) of €0.88 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 9.1% to €10.00.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 0.2% annualised decline to the end of 2024. That is a notable change from historical growth of 1.3% 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 3.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Lassila & Tikanoja Oyj is expected to lag the wider 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Lassila & Tikanoja Oyj's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Lassila & Tikanoja Oyj. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Lassila & Tikanoja Oyj going out as far as 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Lassila & Tikanoja Oyj that we have uncovered.

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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.