Revenue Miss: Citycon Oyj Fell 52% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

Citycon Oyj (HEL:CTY1S) just released its latest quarterly report and things are not looking great. Citycon Oyj delivered a grave earnings miss, with both revenues (€36m) and statutory earnings per share (€0.06) falling badly short of analyst expectations. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, Citycon Oyj's twin analysts currently expect revenues in 2026 to be €305.5m, approximately in line with the last 12 months. Citycon Oyj is also expected to turn profitable, with statutory earnings of €0.46 per share. In the lead-up to this report, the analysts had been modelling revenues of €308.5m and earnings per share (EPS) of €0.48 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for Citycon Oyj

The average price target fell 13% to €3.50, with reduced earnings forecasts clearly tied to a lower valuation estimate.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.2% by the end of 2026. This indicates a significant reduction from annual growth of 2.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 1.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Citycon Oyj is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Citycon Oyj's future valuation.

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 Citycon Oyj going out as far as 2027, and you can see them free on our platform here.

Even so, be aware that Citycon Oyj is showing 2 warning signs in our investment analysis , you should know about...

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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.