Earnings Update: Optomed Oyj (HEL:OPTOMED) Just Reported And Analysts Are Trimming Their Forecasts

Optomed Oyj (HEL:OPTOMED) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It was a pretty negative result overall, with revenues of €3.7m missing analyst predictions by 6.4%. Worse, the business reported a statutory loss of €0.08 per share, much larger than the analysts had forecast prior to the result. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Optomed Oyj after the latest results.

See our latest analysis for Optomed Oyj

Taking into account the latest results, the consensus forecast from Optomed Oyj's two analysts is for revenues of €15.5m in 2023. This reflects a modest 3.8% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 17% from last year to €0.27. Before this latest report, the consensus had been expecting revenues of €16.4m and €0.23 per share in losses. So it's pretty clear the analysts have mixed opinions on Optomed Oyj after this update; revenues were downgraded and per-share losses expected to increase.

There was no major change to the consensus price target of €6.10, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.

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 7.7% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 2.8% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 14% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Optomed Oyj is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Optomed Oyj. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Optomed Oyj that you should be aware of.

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.