Industry Analysts Just Made A Notable Upgrade To Their Sampo Oyj (HEL:SAMPO) Revenue Forecasts

Sampo Oyj (HEL:SAMPO) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The revenue forecast for next year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

After the upgrade, the consensus from Sampo Oyj's eleven analysts is for revenues of €7.2b in 2025, which would reflect a painful 23% decline in sales compared to the last year of performance. Statutory earnings per share are presumed to accumulate 5.4% to €2.49. Prior to this update, the analysts had been forecasting revenues of €6.5b and earnings per share (EPS) of €2.48 in 2025. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

See our latest analysis for Sampo Oyj

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One more thing stood out to us about these estimates, and it's the idea that Sampo Oyj's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 19% to the end of 2025. This tops off a historical decline of 3.2% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.5% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Sampo Oyj to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Sampo Oyj.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Sampo Oyj analysts - going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.