Atria Oyj Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts

Shareholders might have noticed that Atria Oyj (HEL:ATRAV) filed its annual result this time last week. The early response was not positive, with shares down 5.0% to €9.86 in the past week. Things were not great overall, with a surprise (statutory) loss of €0.70 per share on revenues of €1.8b, even though the analysts had been expecting a profit. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Atria Oyj

Taking into account the latest results, Atria Oyj's twin analysts currently expect revenues in 2024 to be €1.76b, approximately in line with the last 12 months. Earnings are expected to improve, with Atria Oyj forecast to report a statutory profit of €0.93 per share. In the lead-up to this report, the analysts had been modelling revenues of €1.79b and earnings per share (EPS) of €1.22 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

The average price target fell 8.7% to €10.50, with reduced earnings forecasts clearly tied to a lower valuation estimate.

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. We would highlight that Atria Oyj's revenue growth is expected to slow, with the forecast 0.5% annualised growth rate until the end of 2024 being well below the historical 4.7% 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 4.9% 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Atria Oyj. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Atria Oyj 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.