Titanium Oyj Just Missed Earnings - But Analysts Have Updated Their Models

As you might know, Titanium Oyj (HEL:TITAN) last week released its latest yearly, and things did not turn out so great for shareholders. Titanium Oyj missed analyst forecasts, with revenues of €26m and statutory earnings per share (EPS) of €0.94, falling short by 3.9% and 8.7% respectively. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Titanium Oyj after the latest results.

See our latest analysis for Titanium Oyj

Taking into account the latest results, the current consensus from Titanium Oyj's solitary analyst is for revenues of €27.0m in 2024. This would reflect a reasonable 2.9% increase on its revenue over the past 12 months. In the lead-up to this report, the analyst had been modelling revenues of €30.7m and earnings per share (EPS) of €1.32 in 2024. So we can see that while the consensus made a real cut to revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenues after the latest results.

The average price target fell 12% to €15.00, withthe analyst clearly having become less optimistic about Titanium Oyj'sprospects following its latest earnings.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Titanium Oyj's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Titanium Oyj's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.9% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.4% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Titanium Oyj.

The Bottom Line

The clear low-light was that the analyst cut their forecast revenue estimates for Titanium Oyj next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates it is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Titanium Oyj's future valuation.

We have estimates for Titanium Oyj from one covering analyst, 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 Titanium 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.