Kesko Oyj Just Recorded A 6.9% EPS Beat: Here's What Analysts Are Forecasting Next

It's been a pretty great week for Kesko Oyj (HEL:KESKOB) shareholders, with its shares surging 11% to €19.82 in the week since its latest third-quarter results. The result was positive overall - although revenues of €3.0b were in line with what the analysts predicted, Kesko Oyj surprised by delivering a statutory profit of €0.35 per share, modestly greater than expected. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Kesko Oyj

Taking into account the latest results, the consensus forecast from Kesko Oyj's six analysts is for revenues of €12.4b in 2025. This reflects a modest 5.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 14% to €1.20. Yet prior to the latest earnings, the analysts had been anticipated revenues of €12.3b and earnings per share (EPS) of €1.18 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.

The consensus price target rose 5.3% to €19.20despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Kesko Oyj's earnings by assigning a price premium. 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. Currently, the most bullish analyst values Kesko Oyj at €23.00 per share, while the most bearish prices it at €17.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. It's clear from the latest estimates that Kesko Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 4.0% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.4% annually. Kesko Oyj is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 forecasts for Kesko Oyj going out to 2026, and you can see them free on our platform here.

Even so, be aware that Kesko Oyj is showing 1 warning sign in our investment analysis , you should know about...

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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.