€3.50: That's What Analysts Think Ilkka Oyj (HEL:ILKKA2) Is Worth After Its Latest Results

Ilkka Oyj (HEL:ILKKA2) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. It was a credible result overall, with revenues of €14m and statutory earnings per share of €0.19 both in line with analyst estimates, showing that Ilkka Oyj is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

View our latest analysis for Ilkka Oyj

Taking into account the latest results, Ilkka Oyj's lone analyst currently expect revenues in 2024 to be €53.5m, approximately in line with the last 12 months. Statutory earnings per share are forecast to descend 12% to €0.20 in the same period. Before this earnings report, the analyst had been forecasting revenues of €54.4m and earnings per share (EPS) of €0.19 in 2024. The analyst seem to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target fell 5.4% to €3.50, suggesting the increase in earnings forecasts was not enough to offset other the analyst concerns.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.6% by the end of 2024. This indicates a significant reduction from annual growth of 8.3% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 1.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Ilkka Oyj is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Ilkka Oyj following these results. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Ilkka Oyj's revenue is expected to perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 analyst estimates for Ilkka Oyj going out as far as 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Ilkka Oyj you should be aware of, and 1 of them is significant.

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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.