Here's What Analysts Are Forecasting For Orion Oyj (HEL:ORNBV) After Its Yearly Results
Investors in Orion Oyj (HEL:ORNBV) had a good week, as its shares rose 2.8% to close at €54.04 following the release of its yearly results. Orion Oyj reported €1.5b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €2.35 beat expectations, being 3.4% higher than what the analysts expected. 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. 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 Orion Oyj
After the latest results, the six analysts covering Orion Oyj are now predicting revenues of €1.65b in 2025. If met, this would reflect a satisfactory 7.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 9.8% to €2.58. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.64b and earnings per share (EPS) of €2.39 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at €56.00, 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. Currently, the most bullish analyst values Orion Oyj at €63.00 per share, while the most bearish prices it at €42.00. 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.
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 period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 7.0% growth on an annualised basis. That is in line with its 6.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.4% annually. So although Orion Oyj is expected to maintain its revenue growth rate, it's only growing at about the rate of 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 Orion Oyj's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 Orion Oyj. Long-term earnings power is much more important than next year's profits. We have forecasts for Orion Oyj going out to 2027, and you can see them free on our platform here.
You still need to take note of risks, for example - Orion Oyj has 1 warning sign we think 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.
About HLSE:ORNBV
Orion Oyj
Develops, manufactures, and markets human and veterinary pharmaceuticals and active pharmaceutical ingredients (APIs) in Finland, Scandinavia, rest of Europe, North America, and internationally.
Outstanding track record with excellent balance sheet and pays a dividend.