Earnings Update: Evli Oyj Beat Earnings And Now Analysts Have New Forecasts For This Year

As you might know, Evli Oyj (HEL:EVLI) just kicked off its latest full-year results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 5.7% to hit €101m. Statutory earnings per share (EPS) came in at €0.81, some 5.2% above whatthe analyst had expected. 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

See our latest analysis for Evli Oyj

After the latest results, the sole analyst covering Evli Oyj are now predicting revenues of €113.1m in 2023. If met, this would reflect a solid 12% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 51% to €1.19. In the lead-up to this report, the analyst had been modelling revenues of €110.9m and earnings per share (EPS) of €1.11 in 2023. So the consensus seems to have become somewhat more optimistic on Evli Oyj's earnings potential following these results.

The consensus price target rose 19% to €19.00, 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. For example, we noticed that Evli Oyj's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 12% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 16% a year over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 7.6% per year. Not only are Evli Oyj's revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Evli Oyj's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Evli Oyj. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

It is also worth noting that we have found 3 warning signs for Evli Oyj that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.