Terveystalo Oyj Just Recorded A 21% EPS Beat: Here's What Analysts Are Forecasting Next

It's been a good week for Terveystalo Oyj (HEL:TTALO) shareholders, because the company has just released its latest first-quarter results, and the shares gained 6.1% to €8.71. It looks like a credible result overall - although revenues of €350m were what the analysts expected, Terveystalo Oyj surprised by delivering a (statutory) profit of €0.19 per share, an impressive 21% above what was forecast. 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 Terveystalo Oyj after the latest results.

Check out our latest analysis for Terveystalo Oyj

Taking into account the latest results, the most recent consensus for Terveystalo Oyj from four analysts is for revenues of €1.33b in 2024. If met, it would imply a credible 2.8% increase on its revenue over the past 12 months. Earnings are expected to improve, with Terveystalo Oyj forecast to report a statutory profit of €0.55 per share. In the lead-up to this report, the analysts had been modelling revenues of €1.33b and earnings per share (EPS) of €0.52 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of €9.70, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic Terveystalo Oyj analyst has a price target of €10.50 per share, while the most pessimistic values it at €9.10. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Terveystalo Oyj is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Terveystalo Oyj's past performance and to peers in the same industry. We would highlight that Terveystalo Oyj's revenue growth is expected to slow, with the forecast 3.8% annualised growth rate until the end of 2024 being well below the historical 8.4% 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 5.6% 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 Terveystalo Oyj.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Terveystalo Oyj's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €9.70, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Terveystalo Oyj going out to 2026, 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.