eQ Oyj Just Beat Revenue By 13%: Here's What Analysts Think Will Happen Next

eQ Oyj (HEL:EQV1V) just released its latest first-quarter results and things are looking bullish. eQ Oyj beat revenue and statutory earnings per share (EPS) expectations, with sales hitting €22m (13% ahead of estimates) and EPS reaching €0.24 (a 9.1% beat). 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

View our latest analysis for eQ Oyj

Following the latest results, eQ Oyj's sole analyst are now forecasting revenues of €85.0m in 2022. This would be a reasonable 2.3% improvement in sales compared to the last 12 months. Statutory per share are forecast to be €1.02, approximately in line with the last 12 months. Before this earnings report, the analyst had been forecasting revenues of €82.5m and earnings per share (EPS) of €0.97 in 2022. It looks like there's been a modest increase in sentiment following the latest results, withthe analyst becoming a bit more optimistic in their predictions for both revenues and earnings.

Althoughthe analyst has upgraded their earnings estimates, there was no change to the consensus price target of €26.00, suggesting that the forecast performance does not have a long term impact on the company's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that eQ Oyj's revenue growth is expected to slow, with the forecast 3.1% annualised growth rate until the end of 2022 being well below the historical 16% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that eQ Oyj is also expected to grow slower than other industry participants.

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 eQ Oyj following these results. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. The consensus price target held steady at €26.00, with the latest estimates not enough to have an impact on their price target.

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.

Before you take the next step you should know about the 1 warning sign for eQ Oyj that we have uncovered.

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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.