Earnings Miss: eQ Oyj Missed EPS By 5.1% And Analysts Are Revising Their Forecasts

Shareholders might have noticed that eQ Oyj (HEL:EQV1V) filed its full-year result this time last week. The early response was not positive, with shares down 4.3% to €14.12 in the past week. It looks like the results were a bit of a negative overall. While revenues of €72m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.1% to hit €0.75 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 estimate suggests is in store for next year.

View our latest analysis for eQ Oyj

Taking into account the latest results, eQ Oyj's lone analyst currently expect revenues in 2024 to be €70.3m, approximately in line with the last 12 months. Statutory per share are forecast to be €0.77, approximately in line with the last 12 months. In the lead-up to this report, the analyst had been modelling revenues of €73.5m and earnings per share (EPS) of €0.82 in 2024. The analyst are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

It'll come as no surprise then, to learn that the analyst has cut their price target 6.7% to €14.00.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.8% by the end of 2024. This indicates a significant reduction from annual growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.4% annually for the foreseeable future. It's pretty clear that eQ Oyj's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for eQ Oyj. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 eQ Oyj going out as far as 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for eQ 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.