Bittium Oyj Just Missed Earnings - But Analysts Have Updated Their Models

Bittium Oyj (HEL:BITTI) missed earnings with its latest second-quarter results, disappointing overly-optimistic forecasts. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of €20m missed by 12%, and statutory earnings per share of €0.045 fell short of forecasts by 25%. 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 Bittium Oyj after the latest results.

See 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 €85.3m in 2024. If met, it would imply a notable 9.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 2,094% to €0.29. Before this earnings report, the analyst had been forecasting revenues of €86.8m 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 minor downgrade to their earnings per share forecasts.

Althoughthe analyst has revised their earnings forecasts for next year, they've also lifted the consensus price target 11% to €8.00, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

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. The analyst is definitely expecting Bittium Oyj's growth to accelerate, with the forecast 19% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Bittium Oyj is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Bittium Oyj. 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 Bittium Oyj. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Bittium Oyj going out as far as 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 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.