F-Secure Oyj (HEL:FSECURE) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in F-Secure Oyj (HEL:FSECURE) had a good week, as its shares rose 6.8% to close at €2.07 following the release of its first-quarter results. F-Secure Oyj reported in line with analyst predictions, delivering revenues of €36m and statutory earnings per share of €0.03, suggesting the business is executing well and in line with its plan. Following the result, the analysts have 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for F-Secure Oyj

Following the latest results, F-Secure Oyj's four analysts are now forecasting revenues of €148.2m in 2024. This would be a reasonable 6.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 15% to €0.14. Yet prior to the latest earnings, the analysts had been anticipated revenues of €147.7m and earnings per share (EPS) of €0.14 in 2024. So the consensus seems to have become somewhat more optimistic on F-Secure Oyj's earnings potential following these results.

The consensus price target was unchanged at €2.53, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on F-Secure Oyj, with the most bullish analyst valuing it at €2.80 and the most bearish at €2.20 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting F-Secure Oyj is an easy business to forecast or the the analysts are all using similar assumptions.

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. It's pretty clear that there is an expectation that F-Secure Oyj's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 9.0% growth on an annualised basis. This is compared to a historical growth rate of 25% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. Factoring in the forecast slowdown in growth, it seems obvious that F-Secure Oyj is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around F-Secure Oyj's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that F-Secure Oyj's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for F-Secure Oyj going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 3 warning signs we've spotted with F-Secure Oyj (including 1 which doesn't sit too well with us) .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.