Earnings Miss: Terveystalo Oyj Missed EPS By 9.2% And Analysts Are Revising Their Forecasts

Terveystalo Oyj (HEL:TTALO) shareholders are probably feeling a little disappointed, since its shares fell 4.9% to €11.24 in the week after its latest full-year results. Revenues of €1.3b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €0.57, missing estimates by 9.2%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Terveystalo Oyj

Taking into account the latest results, the consensus forecast from Terveystalo Oyj's four analysts is for revenues of €1.38b in 2025. This reflects an okay 2.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 38% to €0.78. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.39b and earnings per share (EPS) of €0.80 in 2025. 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.

It might be a surprise to learn that the consensus price target was broadly unchanged at €12.43, 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. The most optimistic Terveystalo Oyj analyst has a price target of €13.00 per share, while the most pessimistic values it at €11.50. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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. It's pretty clear that there is an expectation that Terveystalo Oyj's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.9% growth on an annualised basis. This is compared to a historical growth rate of 6.9% over the past 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. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Terveystalo Oyj.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Terveystalo Oyj's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €12.43, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Terveystalo Oyj going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Terveystalo 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.