€2.50: That's What Analysts Think Suominen Oyj (HEL:SUY1V) Is Worth After Its Latest Results

It's been a good week for Suominen Oyj (HEL:SUY1V) shareholders, because the company has just released its latest first-quarter results, and the shares gained 4.4% to €2.61. The results were positive, with revenue coming in at €114m, beating analyst expectations by 3.0%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Suominen Oyj

Taking into account the latest results, the current consensus from Suominen Oyj's three analysts is for revenues of €465.0m in 2024. This would reflect a modest 3.9% increase on its revenue over the past 12 months. Suominen Oyj is also expected to turn profitable, with statutory earnings of €0.045 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €457.8m and earnings per share (EPS) of €0.10 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

The average price target fell 5.7% to €2.50, with reduced earnings forecasts clearly tied to a lower valuation estimate.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Suominen Oyj's past performance and to peers in the same industry. It's clear from the latest estimates that Suominen Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 5.2% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 2.4% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Suominen Oyj to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Suominen Oyj. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Suominen Oyj's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Suominen Oyj going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Suominen Oyj has 1 warning sign we think 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.