EAB Group Oyj Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

EAB Group Oyj (HEL:EAB) defied analyst predictions to release its yearly results, which were ahead of market expectations. EAB Group Oyj beat earnings, with revenues hitting €22m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 15%. Following the result, the analyst has 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

Check out our latest analysis for EAB Group Oyj

Taking into account the latest results, the consensus forecast from EAB Group Oyj's sole analyst is for revenues of €24.4m in 2022, which would reflect a notable 10% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to shoot up 69% to €0.26. Before this earnings report, the analyst had been forecasting revenues of €24.1m and earnings per share (EPS) of €0.24 in 2022. So the consensus seems to have become somewhat more optimistic on EAB Group Oyj's earnings potential following these results.

The consensus price target rose 6.7% to €3.20, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analyst is definitely expecting EAB Group Oyj's growth to accelerate, with the forecast 10% annualised growth to the end of 2022 ranking favourably alongside historical growth of 4.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that EAB Group Oyj is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards EAB Group Oyj following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for EAB Group Oyj that you need to be mindful 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.