Toivo Group Oyj Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Toivo Group Oyj (HEL:TOIVO) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Toivo Group Oyj's revenues suffered a catastrophic miss, falling 21% short of forecasts, at €6.1m. Statutory earnings per share however performed much better, hitting €0.03, 50% above forecast. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

View our latest analysis for Toivo Group Oyj

Taking into account the latest results, the current consensus from Toivo Group Oyj's single analyst is for revenues of €50.4m in 2023. This would reflect a sizeable 51% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to fall 16% to €0.08 in the same period. In the lead-up to this report, the analyst had been modelling revenues of €33.5m and earnings per share (EPS) of €0.09 in 2023. Although revenue sentiment has improved substantially, the analyst has made a substantial drop in per-share earnings estimates, suggesting that the growth is not without cost.

The consensus price target fell 8.8% to €1.30, suggesting that the analyst are primarily focused on earnings as the driver of value for this business.

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. It's pretty clear that there is an expectation that Toivo Group Oyj's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 127% growth on an annualised basis. This is compared to a historical growth rate of 174% over the past year. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 1.0% annually. Factoring in the forecast slowdown in growth, it's pretty clear that Toivo Group Oyj is still expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Toivo Group Oyj. Fortunately, they also upgraded their revenue estimates, and our data indicates it is expected to perform better 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Toivo Group Oyj going out as far as 2025, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 5 warning signs for Toivo Group Oyj (of which 1 is concerning!) 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.