Tokmanni Group Oyj (HEL:TOKMAN) Just Reported Earnings, And Analysts Cut Their Target Price

As you might know, Tokmanni Group Oyj (HEL:TOKMAN) last week released its latest first-quarter, and things did not turn out so great for shareholders. Revenues missed expectations somewhat, coming in at €342m, but statutory earnings fell catastrophically short, with a loss of €0.32 some 62% larger than what the analysts had predicted. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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, the current consensus from Tokmanni Group Oyj's five analysts is for revenues of €1.75b in 2025. This would reflect a credible 4.0% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 19% to €0.85. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.76b and earnings per share (EPS) of €1.07 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

View our latest analysis for Tokmanni Group Oyj

It might be a surprise to learn that the consensus price target fell 6.6% to €13.55, with the analysts clearly linking lower forecast earnings to the performance of the stock price. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Tokmanni Group Oyj at €17.00 per share, while the most bearish prices it at €11.50. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Tokmanni Group Oyj shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Tokmanni Group Oyj's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.4% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Tokmanni Group Oyj.

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. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Tokmanni Group Oyj going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 3 warning signs for Tokmanni Group Oyj (1 doesn't sit too well with us!) that you need to be mindful 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.