Earnings Miss: Revenio Group Oyj Missed EPS By 5.8% And Analysts Are Revising Their Forecasts

It's been a pretty great week for Revenio Group Oyj (HEL:REG1V) shareholders, with its shares surging 14% to €27.50 in the week since its latest first-quarter results. It looks like the results were a bit of a negative overall. While revenues of €26m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.8% to hit €0.16 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Revenio Group Oyj after the latest results.

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Following the latest results, Revenio Group Oyj's five analysts are now forecasting revenues of €114.1m in 2025. This would be a modest 7.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 19% to €0.85. In the lead-up to this report, the analysts had been modelling revenues of €114.4m and earnings per share (EPS) of €0.87 in 2025. 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 minor downgrade to their earnings per share forecasts.

Check out our latest analysis for Revenio Group Oyj

It might be a surprise to learn that the consensus price target was broadly unchanged at €30.88, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Revenio Group Oyj, with the most bullish analyst valuing it at €33.50 and the most bearish at €28.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Revenio Group Oyj is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Revenio Group Oyj's revenue growth is expected to slow, with the forecast 9.9% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% annually. Factoring in the forecast slowdown in growth, it seems obvious that Revenio Group Oyj is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Revenio Group Oyj. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Revenio Group Oyj's revenue is expected to 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 Revenio Group 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 Revenio Group Oyj going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.