Earnings Miss: Terveystalo Oyj Missed EPS By 5.5% And Analysts Are Revising Their Forecasts

Terveystalo Oyj (HEL:TTALO) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. Terveystalo Oyj missed analyst forecasts, with revenues of €280m and statutory earnings per share (EPS) of €0.13, falling short by 2.0% and 5.5% respectively. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Terveystalo Oyj after the latest results.

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Taking into account the latest results, the current consensus from Terveystalo Oyj's four analysts is for revenues of €1.34b in 2026. This would reflect a credible 2.6% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 25% to €0.90. In the lead-up to this report, the analysts had been modelling revenues of €1.37b and earnings per share (EPS) of €0.94 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

View our latest analysis for Terveystalo Oyj

The consensus price target fell 8.5% to €11.30, with the weaker earnings outlook clearly leading valuation estimates. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Terveystalo Oyj analyst has a price target of €13.00 per share, while the most pessimistic values it at €10.10. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Terveystalo Oyj's revenue growth is expected to slow, with the forecast 2.1% annualised growth rate until the end of 2026 being well below the historical 5.7% 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 5.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that Terveystalo Oyj is also expected to grow slower than other industry participants.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Terveystalo Oyj's future valuation.

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 Terveystalo Oyj analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Terveystalo Oyj you should know about.

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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.