Stock Analysis
Kemira Oyj Just Missed EPS By 7.0%: Here's What Analysts Think Will Happen Next
The annual results for Kemira Oyj (HEL:KEMIRA) were released last week, making it a good time to revisit its performance. Revenues of €2.9b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €1.61, missing estimates by 7.0%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Kemira Oyj
Taking into account the latest results, Kemira Oyj's eight analysts currently expect revenues in 2025 to be €2.99b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 6.5% to €1.73. Yet prior to the latest earnings, the analysts had been anticipated revenues of €2.97b and earnings per share (EPS) of €1.71 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of €24.44, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Kemira Oyj, with the most bullish analyst valuing it at €27.50 and the most bearish at €22.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Kemira Oyj is an easy business to forecast or the the analysts are all using similar assumptions.
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 1.5% annualised growth rate until the end of 2025 being well below the historical 6.7% 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 4.3% 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 Kemira Oyj.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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 €24.44, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Kemira Oyj. Long-term earnings power is much more important than next year's profits. 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..
It might also be worth considering whether Kemira Oyj's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.
About HLSE:KEMIRA
Kemira Oyj
Operates as a chemicals company in Finland, rest of Europe, the Middle East, Africa, the Americas, and the Asia Pacific.