Orthex Oyj Just Missed EPS By 33%: Here's What Analysts Think Will Happen Next

Orthex Oyj (HEL:ORTHEX) missed earnings with its latest full-year results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at €84m, statutory earnings missed forecasts by an incredible 33%, coming in at just €0.12 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Orthex Oyj

Taking into account the latest results, the most recent consensus for Orthex Oyj from dual analysts is for revenues of €88.2m in 2023 which, if met, would be a reasonable 5.0% increase on its sales over the past 12 months. Per-share earnings are expected to leap 202% to €0.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of €91.7m and earnings per share (EPS) of €0.37 in 2023. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the €6.07 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

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. We would highlight that Orthex Oyj's revenue growth is expected to slow, with the forecast 5.0% annualised growth rate until the end of 2023 being well below the historical 7.5% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.1% annually. So it's pretty clear that, while Orthex Oyj's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. They also downgraded their revenue estimates, although industry data suggests that Orthex Oyj's revenues are expected to grow faster than the wider industry. The consensus price target held steady at €6.07, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Orthex Oyj going out as far as 2025, and you can see them free on our platform here.

Even so, be aware that Orthex Oyj is showing 3 warning signs in our investment analysis , and 1 of those is significant...

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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.