Kemira Oyj Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Kemira Oyj (HEL:KEMIRA) just released its latest first-quarter report and things are not looking great. Results look to have been somewhat negative - revenue fell 2.9% short of analyst estimates at €709m, and statutory earnings of €0.38 per share missed forecasts by 5.6%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for Kemira Oyj from eight analysts is for revenues of €2.97b in 2025. If met, it would imply a satisfactory 2.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 7.1% to €1.61. In the lead-up to this report, the analysts had been modelling revenues of €2.99b and earnings per share (EPS) of €1.71 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

See our latest analysis for Kemira Oyj

The consensus price target held steady at €23.69, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values Kemira Oyj at €27.50 per share, while the most bearish prices it at €22.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Kemira Oyj's revenue growth is expected to slow, with the forecast 3.3% annualised growth rate until the end of 2025 being well below the historical 6.0% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.0% annually. Factoring in the forecast slowdown in growth, it looks like Kemira Oyj is forecast to grow at about the same rate as 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 Kemira Oyj. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Kemira Oyj going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Kemira Oyj's balance sheet, and whether we think Kemira Oyj is carrying too much debt, for free on our platform here.

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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.