Lassila & Tikanoja Oyj Just Beat EPS By 17%: Here's What Analysts Think Will Happen Next

Last week saw the newest third-quarter earnings release from Lassila & Tikanoja Oyj (HEL:LAT1V), an important milestone in the company's journey to build a stronger business. It looks like a credible result overall - although revenues of €192m were in line with what the analysts predicted, Lassila & Tikanoja Oyj surprised by delivering a statutory profit of €0.35 per share, a notable 17% above expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Lassila & Tikanoja Oyj after the latest results.

View our latest analysis for Lassila & Tikanoja Oyj

Following last week's earnings report, Lassila & Tikanoja Oyj's two analysts are forecasting 2025 revenues to be €791.1m, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 26% to €0.82. Before this earnings report, the analysts had been forecasting revenues of €799.5m and earnings per share (EPS) of €0.86 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 5.3% to €10.00, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Lassila & Tikanoja Oyj's growth to accelerate, with the forecast 1.4% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.1% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.5% per year. So it's clear that despite the acceleration in growth, Lassila & Tikanoja Oyj is expected to grow meaningfully slower than the industry average.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Lassila & Tikanoja 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Lassila & Tikanoja Oyj going out as far as 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Lassila & Tikanoja Oyj that you need to be mindful 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.