€1.30 - That's What Analysts Think HKFoods Oyj (HEL:HKFOODS) Is Worth After These Results

It's been a good week for HKFoods Oyj (HEL:HKFOODS) shareholders, because the company has just released its latest first-quarter results, and the shares gained 4.6% to €1.25. The result was fairly weak overall, with revenues of €234m being 6.1% less than what the analyst had been modelling. 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. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

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Taking into account the latest results, HKFoods Oyj's sole analyst currently expect revenues in 2025 to be €1.02b, approximately in line with the last 12 months. Yet prior to the latest earnings, the analyst had been anticipated revenues of €1.05b and earnings per share (EPS) of €0.06 in 2025. Overall, while there's been a minor downgrade to revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important following the latest results.

See our latest analysis for HKFoods Oyj

Additionally, the consensus price target for HKFoods Oyj rose 30% to €1.30, showing a clear increase in optimism from the the analyst involved.

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 stands out from these estimates, which is that HKFoods Oyj is forecast to grow faster in the future than it has in the past, with revenues expected to display 2.0% annualised growth until the end of 2025. If achieved, this would be a much better result than the 16% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.2% per year. Although HKFoods Oyj's revenues are expected to improve, it seems that the analyst is still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The clear low-light was that the analyst cut their forecast revenue estimates for HKFoods Oyj next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse 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.

We have estimates for HKFoods Oyj from one covering analyst, and you can see them free on our platform here.

You can also see whether HKFoods Oyj is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.