Pihlajalinna Oyj Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

There's been a notable change in appetite for Pihlajalinna Oyj (HEL:PIHLIS) shares in the week since its annual report, with the stock down 10% to €11.58. It looks like the results were a bit of a negative overall. While revenues of €578m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.5% to hit €0.89 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Pihlajalinna Oyj

Taking into account the latest results, the most recent consensus for Pihlajalinna Oyj from four analysts is for revenues of €651.6m in 2022 which, if met, would be a decent 13% increase on its sales over the past 12 months. Statutory earnings per share are expected to reduce 5.3% to €0.84 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €650.5m and earnings per share (EPS) of €0.99 in 2022. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at €13.64, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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. Currently, the most bullish analyst values Pihlajalinna Oyj at €14.20 per share, while the most bearish prices it at €12.50. This is a very narrow spread of estimates, implying either that Pihlajalinna Oyj 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. The analysts are definitely expecting Pihlajalinna Oyj's growth to accelerate, with the forecast 13% annualised growth to the end of 2022 ranking favourably alongside historical growth of 6.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Pihlajalinna Oyj to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €13.64, 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 Pihlajalinna Oyj analysts - going out to 2024, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Pihlajalinna Oyj that you need to take into consideration.

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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.