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

Shareholders might have noticed that YIT Oyj (HEL:YIT) filed its full-year result this time last week. The early response was not positive, with shares down 9.7% to €2.23 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at €1.8b, statutory losses exploded to €0.51 per share. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for YIT Oyj

Taking into account the latest results, YIT Oyj's five analysts currently expect revenues in 2025 to be €1.80b, approximately in line with the last 12 months. Statutory losses are forecast to balloon 86% to €0.068 per share. Before this earnings report, the analysts had been forecasting revenues of €1.86b and earnings per share (EPS) of €0.011 in 2025. There looks to have been a significant drop in sentiment regarding YIT Oyj's prospects after these latest results, with a minor downgrade to revenues and the analysts now forecasting a loss instead of a profit.

The consensus price target fell 11% to €2.44, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic YIT Oyj analyst has a price target of €2.90 per share, while the most pessimistic values it at €1.75. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await YIT Oyj shareholders.

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. We would also point out that the forecast 1.0% annualised revenue decline to the end of 2025 is better than the historical trend, which saw revenues shrink 12% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.9% per year. So while a broad number of companies are forecast to grow, unfortunately YIT Oyj is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analysts are expecting YIT Oyj to become unprofitable next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of YIT Oyj's future valuation.

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

It is also worth noting that we have found 2 warning signs for YIT Oyj (1 is potentially serious!) that you need to take into consideration.

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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.