Stora Enso Oyj Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Stora Enso Oyj (HEL:STERV) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at €2.2b, statutory earnings beat expectations by a notable 81%, coming in at €0.11 per share. 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.

See our latest analysis for Stora Enso Oyj

Taking into account the latest results, the current consensus from Stora Enso Oyj's 14 analysts is for revenues of €9.29b in 2024. This would reflect a satisfactory 5.1% increase on its revenue over the past 12 months. Stora Enso Oyj is also expected to turn profitable, with statutory earnings of €0.46 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €9.29b and earnings per share (EPS) of €0.44 in 2024. So the consensus seems to have become somewhat more optimistic on Stora Enso Oyj's earnings potential following these results.

The consensus price target was unchanged at €13.15, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Stora Enso Oyj, with the most bullish analyst valuing it at €16.50 and the most bearish at €9.80 per share. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Stora Enso Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 6.9% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Stora Enso Oyj to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Stora Enso Oyj's earnings potential next year. 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. The consensus price target held steady at €13.15, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Stora Enso Oyj analysts - going out to 2026, and you can see them free on our platform here.

You can also view our analysis of Stora Enso Oyj's balance sheet, and whether we think Stora Enso 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.