Outokumpu Oyj (HEL:OUT1V) Full-Year Results: Here's What Analysts Are Forecasting For This Year

Shareholders of Outokumpu Oyj (HEL:OUT1V) will be pleased this week, given that the stock price is up 11% to €3.53 following its latest full-year results. It looks like the results were pretty good overall. While revenues of €5.9b were in line with analyst predictions, statutory losses were much smaller than expected, with Outokumpu Oyj losing €0.09 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Outokumpu Oyj

Following the latest results, Outokumpu Oyj's ten analysts are now forecasting revenues of €6.37b in 2025. This would be a satisfactory 7.1% improvement in revenue compared to the last 12 months. Outokumpu Oyj is also expected to turn profitable, with statutory earnings of €0.12 per share. In the lead-up to this report, the analysts had been modelling revenues of €6.38b and earnings per share (EPS) of €0.18 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at €3.43, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Outokumpu Oyj at €4.00 per share, while the most bearish prices it at €2.30. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Outokumpu Oyj's growth to accelerate, with the forecast 7.1% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Outokumpu Oyj to grow faster than the wider 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than 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.

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

It is also worth noting that we have found 1 warning sign for Outokumpu Oyj that you need to take into consideration.

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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.