Suominen Oyj (HEL:SUY1V) Just Reported Earnings, And Analysts Cut Their Target Price

Last week saw the newest full-year earnings release from Suominen Oyj (HEL:SUY1V), an important milestone in the company's journey to build a stronger business. It was a pretty bad result overall; while revenues were in line with expectations at €451m, statutory losses exploded to €0.22 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Suominen Oyj

After the latest results, the three analysts covering Suominen Oyj are now predicting revenues of €460.2m in 2024. If met, this would reflect a modest 2.1% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Suominen Oyj forecast to report a statutory profit of €0.043 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €456.9m and earnings per share (EPS) of €0.13 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

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 pretty clear that there is an expectation that Suominen Oyj's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 2.7% over the past five years. Compare this to the 12 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 2.2% per year. So it's pretty clear that, while Suominen Oyj's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

Even so, be aware that Suominen Oyj is showing 1 warning sign in our investment analysis , 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.