Stock Analysis
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- HLSE:TOKMAN
Tokmanni Group Oyj Just Missed Earnings - But Analysts Have Updated Their Models
Last week, you might have seen that Tokmanni Group Oyj (HEL:TOKMAN) released its annual result to the market. The early response was not positive, with shares down 9.4% to €12.54 in the past week. It looks like the results were a bit of a negative overall. While revenues of €1.7b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.0% to hit €0.82 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Tokmanni Group Oyj
Taking into account the latest results, the most recent consensus for Tokmanni Group Oyj from five analysts is for revenues of €1.76b in 2025. If met, it would imply a modest 5.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 28% to €1.05. Before this earnings report, the analysts had been forecasting revenues of €1.76b and earnings per share (EPS) of €1.18 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at €15.17, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Tokmanni Group Oyj at €18.00 per share, while the most bearish prices it at €13.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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. 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 5.1% growth on an annualised basis. This is compared to a historical growth rate of 10% 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. Factoring in the forecast slowdown in growth, it seems obvious that Tokmanni Group Oyj is also expected to grow slower than other industry participants.
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. The consensus price target held steady at €15.17, with the latest estimates not enough to have an impact on their price targets.
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..
Before you take the next step you should know about the 2 warning signs for Tokmanni Group Oyj (1 is potentially serious!) that we have uncovered.
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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.
About HLSE:TOKMAN
Tokmanni Group Oyj
Operates as a discount retailer in Finland, Sweden, and Denmark.