Pihlajalinna Oyj Just Beat EPS By 12%: Here's What Analysts Think Will Happen Next

Shareholders of Pihlajalinna Oyj (HEL:PIHLIS) will be pleased this week, given that the stock price is up 12% to €14.50 following its latest first-quarter results. Revenues were €181m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of €0.47 were also better than expected, beating analyst predictions by 12%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Pihlajalinna Oyj after the latest results.

We've discovered 2 warning signs about Pihlajalinna Oyj. View them for free.

Taking into account the latest results, Pihlajalinna Oyj's three analysts currently expect revenues in 2025 to be €696.6m, approximately in line with the last 12 months. Statutory earnings per share are predicted to soar 23% to €1.60. Yet prior to the latest earnings, the analysts had been anticipated revenues of €703.9m and earnings per share (EPS) of €1.48 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Pihlajalinna Oyj

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 13% to €15.77. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Pihlajalinna Oyj, with the most bullish analyst valuing it at €17.50 and the most bearish at €14.30 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. We would highlight that revenue is expected to reverse, with a forecast 1.2% annualised decline to the end of 2025. That is a notable change from historical growth of 8.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.8% annually for the foreseeable future. It's pretty clear that Pihlajalinna Oyj's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Pihlajalinna Oyj following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Pihlajalinna Oyj's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Pihlajalinna Oyj. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Pihlajalinna Oyj going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Pihlajalinna Oyj .

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.