Stock Analysis

Puuilo Oyj (HEL:PUUILO) Analysts Are Pretty Bullish On The Stock After Recent Results

HLSE:PUUILO
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It's been a pretty great week for Puuilo Oyj (HEL:PUUILO) shareholders, with its shares surging 13% to €9.91 in the week since its latest annual results. Puuilo Oyj reported in line with analyst predictions, delivering revenues of €339m and statutory earnings per share of €0.46, suggesting the business is executing well and in line with its plan. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Puuilo Oyj

earnings-and-revenue-growth
HLSE:PUUILO Earnings and Revenue Growth March 30th 2024

Taking into account the latest results, the consensus forecast from Puuilo Oyj's four analysts is for revenues of €392.2m in 2025. This reflects a solid 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 21% to €0.55. Yet prior to the latest earnings, the analysts had been anticipated revenues of €391.1m and earnings per share (EPS) of €0.56 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 7.1% to €10.00. It looks as though they previously had some doubts over whether the business would live up to their expectations.

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 16% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.5% annually. 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 there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 estimates - from multiple Puuilo Oyj analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Puuilo Oyj that 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.