Analysts Are Updating Their Puuilo Oyj (HEL:PUUILO) Estimates After Its Second-Quarter Results

Last week saw the newest quarterly earnings release from Puuilo Oyj (HEL:PUUILO), an important milestone in the company's journey to build a stronger business. Results were roughly in line with estimates, with revenues of €120m and statutory earnings per share of €0.22. 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.

Check out our latest analysis for Puuilo Oyj

Taking into account the latest results, the most recent consensus for Puuilo Oyj from four analysts is for revenues of €390.7m in 2025. If met, it would imply an okay 7.2% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 7.7% to €0.54. Yet prior to the latest earnings, the analysts had been anticipated revenues of €396.0m and earnings per share (EPS) of €0.55 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at €11.33, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Puuilo Oyj, with the most bullish analyst valuing it at €12.00 and the most bearish at €11.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 13% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 10% per year. So it's pretty clear that Puuilo Oyj is forecast to grow substantially faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €11.33, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Puuilo Oyj. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Puuilo Oyj analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Puuilo Oyj that you need to take into consideration.

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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.