Orthex Oyj (HEL:ORTHEX) Just Reported Earnings, And Analysts Cut Their Target Price

It's been a good week for Orthex Oyj (HEL:ORTHEX) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.9% to €4.85. Results look mixed - while revenue fell marginally short of analyst estimates at €21m, statutory earnings were in line with expectations, at €0.05 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Orthex Oyj after the latest results.

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Taking into account the latest results, the consensus forecast from Orthex Oyj's four analysts is for revenues of €90.2m in 2025. This reflects an okay 2.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 7.9% to €0.35. In the lead-up to this report, the analysts had been modelling revenues of €89.8m and earnings per share (EPS) of €0.36 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Orthex Oyj

The consensus price target fell 7.8% to €5.53, 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 quarterly results. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Orthex Oyj at €5.60 per share, while the most bearish prices it at €5.50. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Orthex Oyj is an easy business to forecast or the the analysts are all using similar assumptions.

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 analysts are definitely expecting Orthex Oyj's growth to accelerate, with the forecast 4.6% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.9% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.5% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Orthex Oyj is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Orthex Oyj going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Orthex Oyj's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.