Analysts Have Made A Financial Statement On Optomed Oyj's (HEL:OPTOMED) Second-Quarter Report

Explore Optomed Oyj's Fair Values from the Community and select yours

It's shaping up to be a tough period for Optomed Oyj (HEL:OPTOMED), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. It looks like a pretty negative result overall with revenues of €3.8m coming in 11% short of analyst estimates. Statutory losses were €0.08 per share, 14% larger than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the four analysts covering Optomed Oyj are now predicting revenues of €17.5m in 2025. If met, this would reflect a decent 8.9% improvement in revenue compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to €0.27. Before this earnings announcement, the analysts had been modelling revenues of €17.9m and losses of €0.14 per share in 2025. While this year's revenue estimates dropped there was also a regrettable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

View our latest analysis for Optomed Oyj

The average price target was broadly unchanged at €5.08, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. 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. The most optimistic Optomed Oyj analyst has a price target of €5.50 per share, while the most pessimistic values it at €4.20. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Optomed Oyj is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Optomed Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.2% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Optomed Oyj is expected to grow much faster than its industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Optomed Oyj. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Optomed Oyj analysts - going out to 2027, 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 Optomed Oyj 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.