€5.00: That's What Analysts Think PunaMusta Media Oyj (HEL:PUMU) Is Worth After Its Latest Results

PunaMusta Media Oyj (HEL:PUMU) investors will be delighted, with the company turning in some strong numbers with its latest results. PunaMusta Media Oyj outperformed on both revenues and the expected loss per share, with revenues of €28m beating estimates by 16%. Statutory losses were €0.09, 25% smaller thanthe analyst expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on PunaMusta Media Oyj after the latest results.

See our latest analysis for PunaMusta Media Oyj

Following the latest results, PunaMusta Media Oyj's sole analyst are now forecasting revenues of €132.3m in 2022. This would be a decent 11% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 345% (on a statutory basis) to €0.10. In the lead-up to this report, the analyst had been modelling revenues of €120.5m and earnings per share (EPS) of €0.30 in 2022. While they've upgraded their revenue numbers for next year, the consensus also expects losses to increase, perhaps due to the investments required to grow revenue. In any event, it's not clear that these new estimates are particularly bullish.

It will come as no surprise that expanding losses caused the consensus price target to fall 11% to €5.00with the analyst implicitly ranking ongoing losses as a greater concern than growing revenues.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that PunaMusta Media Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 3.2% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect PunaMusta Media Oyj to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst is expecting PunaMusta Media Oyj to become unprofitable next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for PunaMusta Media Oyj going out as far as 2024, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for PunaMusta Media Oyj (2 are a bit unpleasant!) 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.