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

Investors in Revenio Group Oyj (HEL:REG1V) had a good week, as its shares rose 2.3% to close at €25.22 following the release of its quarterly results. Revenues were in line with forecasts, at €24m, although statutory earnings per share came in 11% below what the analysts expected, at €0.14 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Revenio Group Oyj

Taking into account the latest results, the current consensus from Revenio Group Oyj's five analysts is for revenues of €105.0m in 2024. This would reflect a notable 8.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 11% to €0.77. Before this earnings report, the analysts had been forecasting revenues of €105.1m and earnings per share (EPS) of €0.81 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at €29.06, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Revenio Group Oyj, with the most bullish analyst valuing it at €32.00 and the most bearish at €27.30 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.

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 Revenio Group Oyj's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2024 being well below the historical 19% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 14% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Revenio Group Oyj.

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 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Revenio Group Oyj that you should be aware 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.