Duell Oyj (HEL:DUELL) Just Reported Earnings, And Analysts Cut Their Target Price

There's been a major selloff in Duell Oyj (HEL:DUELL) shares in the week since it released its yearly report, with the stock down 26% to €0.49. Revenues came in at €119m, in line with expectations, while statutory losses per share were substantially higher than expected, at €0.10 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Duell Oyj

Taking into account the latest results, Duell Oyj's two analysts currently expect revenues in 2024 to be €117.4m, approximately in line with the last 12 months. Per-share statutory losses are expected to explode, reaching €0.02 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €121.2m and earnings per share (EPS) of €0.005 in 2024. There looks to have been a significant drop in sentiment regarding Duell Oyj's prospects after these latest results, with a minor downgrade to revenues and the analysts now forecasting a loss instead of a profit.

The consensus price target fell 27% to €0.78, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.2% by the end of 2024. This indicates a significant reduction from annual growth of 26% 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 6.2% annually for the foreseeable future. It's pretty clear that Duell Oyj's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts are expecting Duell Oyj to become unprofitable next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 4 warning signs for Duell Oyj (of which 2 are a bit 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.