Bittium Oyj (HEL:BITTI) Just Reported And Analysts Have Been Lifting Their Price Targets

Shareholders might have noticed that Bittium Oyj (HEL:BITTI) filed its full-year result this time last week. The early response was not positive, with shares down 3.6% to €4.40 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at €79m, statutory losses exploded to €0.15 per share. 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Bittium Oyj

Taking into account the latest results, the most recent consensus for Bittium Oyj from one analyst is for revenues of €89.6m in 2024. If met, it would imply a notable 14% increase on its revenue over the past 12 months. Bittium Oyj is also expected to turn profitable, with statutory earnings of €0.29 per share. In the lead-up to this report, the analyst had been modelling revenues of €90.6m and earnings per share (EPS) of €0.31 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analyst did make a small dip in their earnings per share forecasts.

Althoughthe analyst has revised their earnings forecasts for next year, they've also lifted the consensus price target 19% to €5.00, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Bittium Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.0% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Bittium Oyj is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Bittium Oyj going out as far as 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Bittium 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.