Stock Analysis

Raisio plc Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

HLSE:RAIVV
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Shareholders might have noticed that Raisio plc (HEL:RAIVV) filed its quarterly result this time last week. The early response was not positive, with shares down 4.1% to €2.23 in the past week. Revenues were in line with forecasts, at €59m, although statutory earnings per share came in 14% below what the analysts expected, at €0.03 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are 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 estimates to see what could be in store for next year.

See our latest analysis for Raisio

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HLSE:RAIVV Earnings and Revenue Growth November 8th 2024

Taking into account the latest results, the consensus forecast from Raisio's three analysts is for revenues of €239.8m in 2025. This reflects a satisfactory 6.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 25% to €0.14. Before this earnings report, the analysts had been forecasting revenues of €239.6m and earnings per share (EPS) of €0.14 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €2.53. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Raisio at €2.70 per share, while the most bearish prices it at €2.40. This is a very narrow spread of estimates, implying either that Raisio is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. For example, we noticed that Raisio's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 4.8% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 1.4% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.5% annually. So while Raisio's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at €2.53, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Raisio analysts - going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Raisio you should know about.

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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.