Here's What Analysts Are Forecasting For Remedy Entertainment Oyj (HEL:REMEDY) After Its Annual Results

It's been a good week for Remedy Entertainment Oyj (HEL:REMEDY) shareholders, because the company has just released its latest yearly results, and the shares gained 6.6% to €13.82. It was a respectable set of results; while revenues of €51m were in line with analyst predictions, statutory losses were 17% smaller than expected, with Remedy Entertainment Oyj losing €0.27 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Remedy Entertainment Oyj

After the latest results, the two analysts covering Remedy Entertainment Oyj are now predicting revenues of €65.8m in 2025. If met, this would reflect a substantial 30% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Remedy Entertainment Oyj forecast to report a statutory profit of €0.28 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €66.8m and earnings per share (EPS) of €0.20 in 2025. Although the revenue estimates have not really changed, we can see there's been a very substantial lift in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

There's been no major changes to the consensus price target of €19.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

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. The analysts are definitely expecting Remedy Entertainment Oyj's growth to accelerate, with the forecast 30% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Remedy Entertainment 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 Remedy Entertainment 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. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Remedy Entertainment Oyj. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.