Apetit Oyj Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Apetit Oyj (HEL:APETIT) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues were €176m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of €1.55 were also better than expected, beating analyst predictions by 18%. 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Apetit Oyj

After the latest results, the consensus from Apetit Oyj's sole analyst is for revenues of €167.0m in 2024, which would reflect a measurable 4.8% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to tumble 35% to €1.02 in the same period. In the lead-up to this report, the analyst had been modelling revenues of €163.0m and earnings per share (EPS) of €0.91 in 2024. So it seems there's been a definite increase in optimism about Apetit Oyj's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

Despite these upgrades,the analyst has not made any major changes to their price target of €13.50, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2024 compared to the historical decline of 11% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 4.9% annually. So while a broad number of companies are forecast to grow, unfortunately Apetit Oyj is expected to see its revenue affected worse than other companies in the 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 Apetit Oyj following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Before you take the next step you should know about the 3 warning signs for Apetit Oyj (1 is a bit concerning!) 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.