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

Investors in Pihlajalinna Oyj (HEL:PIHLIS) had a good week, as its shares rose 2.2% to close at €7.29 following the release of its yearly results. It looks like a pretty bad result, all things considered. Although revenues of €728m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 46% to hit €0.19 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Pihlajalinna Oyj

Taking into account the latest results, Pihlajalinna Oyj's four analysts currently expect revenues in 2024 to be €724.7m, approximately in line with the last 12 months. Statutory earnings per share are predicted to bounce 182% to €0.71. Yet prior to the latest earnings, the analysts had been anticipated revenues of €721.6m and earnings per share (EPS) of €0.73 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at €8.30, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on Pihlajalinna Oyj, with the most bullish analyst valuing it at €9.00 and the most bearish at €7.90 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Pihlajalinna Oyj is an easy business to forecast or the the analysts are all using similar 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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.4% by the end of 2024. This indicates a significant reduction from annual growth of 9.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Pihlajalinna Oyj is expected to lag 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. On the plus side, there were no major changes to revenue estimates; although 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.

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 forecasts for Pihlajalinna Oyj 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 Pihlajalinna Oyj that you need to be mindful 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.