Wulff-Yhtiöt Oyj Just Beat EPS By 41%: Here's What Analysts Think Will Happen Next

It's been a pretty great week for Wulff-Yhtiöt Oyj (HEL:WUF1V) shareholders, with its shares surging 13% to €2.41 in the week since its latest full-year results. Revenues of €94m fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of €0.31 an impressive 41% ahead of estimates. Following the result, the analyst has 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Wulff-Yhtiöt Oyj after the latest results.

Check out our latest analysis for Wulff-Yhtiöt Oyj

After the latest results, the single analyst covering Wulff-Yhtiöt Oyj are now predicting revenues of €101.9m in 2024. If met, this would reflect a decent 8.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dive 28% to €0.22 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of €103.0m and earnings per share (EPS) of €0.45 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

Althoughthe analyst has revised their earnings forecasts for next year, they've also lifted the consensus price target 27% to €2.60, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

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 Wulff-Yhtiöt Oyj's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 8.7% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.8% per year. So it's pretty clear that, while Wulff-Yhtiöt Oyj's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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 analyst clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Wulff-Yhtiöt Oyj. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Wulff-Yhtiöt Oyj going out as far as 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 4 warning signs with Wulff-Yhtiöt Oyj , and understanding them 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.