Stock Analysis

Earnings Miss: Oriola Oyj Missed EPS And Analysts Are Revising Their Forecasts

HLSE:OKDBV
Source: Shutterstock

Last week saw the newest quarterly earnings release from Oriola Oyj (HEL:OKDBV), an important milestone in the company's journey to build a stronger business. Revenues beat expectations by 11% to hit €424m, although earnings fell badly short, with Oriola Oyj reported a statutory loss of €0.01 per share even though the analysts had been forecasting a profit. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Oriola Oyj

earnings-and-revenue-growth
HLSE:OKDBV Earnings and Revenue Growth November 3rd 2024

Taking into account the latest results, the current consensus from Oriola Oyj's three analysts is for revenues of €1.69b in 2025. This would reflect a modest 3.6% increase on its revenue over the past 12 months. Oriola Oyj is also expected to turn profitable, with statutory earnings of €0.083 per share. In the lead-up to this report, the analysts had been modelling revenues of €1.66b and earnings per share (EPS) of €0.08 in 2025. So the consensus seems to have become somewhat more optimistic on Oriola Oyj's earnings potential following these results.

The consensus price target was unchanged at €1.05, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

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. One thing stands out from these estimates, which is that Oriola Oyj is forecast to grow faster in the future than it has in the past, with revenues expected to display 2.9% annualised growth until the end of 2025. If achieved, this would be a much better result than the 3.2% annual decline 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 5.0% annually for the foreseeable future. Although Oriola Oyj's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Oriola Oyj following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Oriola Oyj's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €1.05, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Oriola Oyj analysts - going 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 1 warning sign for Oriola Oyj that you need to be mindful of.

New: AI Stock Screener & Alerts

Our new AI Stock Screener scans the market every day to uncover opportunities.

• Dividend Powerhouses (3%+ Yield)
• Undervalued Small Caps with Insider Buying
• High growth Tech and AI Companies

Or build your own from over 50 metrics.

Explore Now for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.