Earnings Miss: Fodelia Oyj Missed EPS By 29% And Analysts Are Revising Their Forecasts

Fodelia Oyj (HEL:FODELIA) shareholders are probably feeling a little disappointed, since its shares fell 4.7% to €5.24 in the week after its latest annual results. It looks like a pretty bad result, all things considered. Although revenues of €49m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 29% to hit €0.15 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Fodelia Oyj

Taking into account the latest results, the current consensus from Fodelia Oyj's lone analyst is for revenues of €55.4m in 2024. This would reflect a notable 13% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 94% to €0.29. In the lead-up to this report, the analyst had been modelling revenues of €55.1m and earnings per share (EPS) of €0.31 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analyst did make a small dip in their earnings per share forecasts.

Despite cutting their earnings forecasts,the analyst has lifted their price target 5.3% to €6.00, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

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. It's pretty clear that there is an expectation that Fodelia Oyj's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 24% 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 4.8% annually. So it's pretty clear that, while Fodelia Oyj's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Fodelia Oyj. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Fodelia Oyj , and understanding them should be part of your investment process.

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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.