Tokmanni Group Oyj Just Missed EPS By 20%: Here's What Analysts Think Will Happen Next

The analysts might have been a bit too bullish on Tokmanni Group Oyj (HEL:TOKMAN), given that the company fell short of expectations when it released its second-quarter results last week. Tokmanni Group Oyj missed earnings this time around, with €423m revenue coming in 2.2% below what the analysts had modelled. Statutory earnings per share (EPS) of €0.25 also fell short of expectations by 20%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Tokmanni Group Oyj

Taking into account the latest results, the current consensus from Tokmanni Group Oyj's five analysts is for revenues of €1.67b in 2024. This would reflect a modest 4.4% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 21% to €0.85. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.67b and earnings per share (EPS) of €0.86 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With no major changes to earnings forecasts, the consensus price target fell 8.6% to €13.33, suggesting that the analysts might have previously been hoping for an earnings upgrade. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Tokmanni Group Oyj at €15.00 per share, while the most bearish prices it at €12.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Tokmanni Group Oyj'shistorical trends, as the 8.9% annualised revenue growth to the end of 2024 is roughly in line with the 9.1% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So although Tokmanni Group Oyj is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 in mind, we wouldn't be too quick to come to a conclusion on Tokmanni Group Oyj. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Tokmanni Group Oyj analysts - going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Tokmanni Group Oyj (at least 1 which shouldn't be ignored) , and understanding these should be part of your investment process.

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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.