Outokumpu Oyj (HEL:OUT1V) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Outokumpu Oyj (HEL:OUT1V) just released its latest quarterly report and things are not looking great. Revenues missed expectations somewhat, coming in at €1.5b, but statutory earnings fell catastrophically short, with a loss of €0.04 some 167% larger than what the analysts had predicted. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Our free stock report includes 1 warning sign investors should be aware of before investing in Outokumpu Oyj. Read for free now.

Following the latest results, Outokumpu Oyj's ten analysts are now forecasting revenues of €6.35b in 2025. This would be a reasonable 6.0% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Outokumpu Oyj forecast to report a statutory profit of €0.14 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.45b and earnings per share (EPS) of €0.11 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.

See our latest analysis for Outokumpu Oyj

There's been no major changes to the consensus price target of €3.55, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's 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. There are some variant perceptions on Outokumpu Oyj, with the most bullish analyst valuing it at €4.50 and the most bearish at €2.60 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 8.1% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Outokumpu Oyj is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Outokumpu Oyj's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still 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.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Outokumpu Oyj you should be aware of.

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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.