Earnings Miss: Solwers Oyj Missed EPS By 52% And Analysts Are Revising Their Forecasts

Solwers Oyj (HEL:SOLWERS) came out with its half-yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results overall were not great, with earnings of €0.07 per share falling drastically short of analyst expectations. Meanwhile revenues hit €40m and were slightly better than forecasts. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Solwers Oyj

After the latest results, the two analysts covering Solwers Oyj are now predicting revenues of €78.0m in 2024. If met, this would reflect a reasonable 7.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 16% to €0.28. In the lead-up to this report, the analysts had been modelling revenues of €77.4m and earnings per share (EPS) of €0.29 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target fell 9.1% to €5.00, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the semi-annual results.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 15% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.8% annually. So it's pretty clear that Solwers Oyj is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Solwers Oyj's future valuation.

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 Solwers Oyj going out as far as 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Solwers Oyj that you should be aware of.

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

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.