Orthex Oyj Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders might have noticed that Orthex Oyj (HEL:ORTHEX) filed its quarterly result this time last week. The early response was not positive, with shares down 8.0% to €5.28 in the past week. Statutory earnings per share fell badly short of expectations, coming in at €0.10, some 26% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at €23m. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Orthex Oyj

Taking into account the latest results, the current consensus from Orthex Oyj's three analysts is for revenues of €96.1m in 2025. This would reflect a satisfactory 7.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 33% to €0.48. Before this earnings report, the analysts had been forecasting revenues of €96.1m and earnings per share (EPS) of €0.50 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The average price target fell 6.9% to €6.75, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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. The most optimistic Orthex Oyj analyst has a price target of €7.00 per share, while the most pessimistic values it at €6.50. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. The analysts are definitely expecting Orthex Oyj's growth to accelerate, with the forecast 6.1% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.3% 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 3.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Orthex Oyj is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 in mind, we wouldn't be too quick to come to a conclusion on Orthex Oyj. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Orthex Oyj analysts - going out to 2026, and you can see them free on our platform here.

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