Oriola Oyj Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

A week ago, Oriola Oyj (HEL:OKDBV) came out with a strong set of second-quarter numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of €439m, some 9.0% above estimates, and statutory earnings per share (EPS) coming in at €0.01, 100% ahead of expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Oriola Oyj

After the latest results, the three analysts covering Oriola Oyj are now predicting revenues of €1.61b in 2024. If met, this would reflect a reasonable 3.3% improvement in revenue compared to the last 12 months. Oriola Oyj is also expected to turn profitable, with statutory earnings of €0.02 per share. In the lead-up to this report, the analysts had been modelling revenues of €1.56b and earnings per share (EPS) of €0.02 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of €1.05, implying that the uplift in revenue is not expected to greatly contribute to Oriola Oyj's valuation in the near 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. For example, we noticed that Oriola Oyj's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 6.6% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 3.3% a year 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 5.4% per year. So it looks like Oriola Oyj is expected to grow at about the same rate as the wider 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. They also upgraded their revenue forecasts, although the latest estimates suggest that Oriola Oyj will grow in line with the overall industry. The consensus price target held steady at €1.05, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Oriola Oyj. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Oriola Oyj analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Oriola Oyj that 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.

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