Atria Oyj Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Atria Oyj (HEL:ATRAV) shareholders are probably feeling a little disappointed, since its shares fell 4.9% to €9.70 in the week after its latest quarterly results. Although revenues of €417m were in line with analyst expectations, Atria Oyj surprised on the earnings front, with an unexpected (statutory) profit of €0.10 per share a nice improvement on the losses that the analystsforecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Atria Oyj

Following last week's earnings report, Atria Oyj's two analysts are forecasting 2024 revenues to be €1.76b, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €1.76b and earnings per share (EPS) of €0.93 in 2024. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

Intriguingly,the analysts have cut their price target 8.7% to €10.50 showing a clear decline in sentiment around Atria Oyj's valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Atria Oyj's revenue growth is expected to slow, with the forecast 1.6% annualised growth rate until the end of 2024 being well below the historical 4.8% 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 4.2% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Atria Oyj.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Atria Oyj's future valuation.

We have estimates for Atria Oyj from its two analysts out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Atria Oyj that you need to be mindful 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.