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

Shareholders of Innofactor Oyj (HEL:IFA1V) will be pleased this week, given that the stock price is up 15% to €1.35 following its latest annual results. It was not a great result overall. While revenues of €80m were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 15% to hit €0.094 per share. 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.

View our latest analysis for Innofactor Oyj

Taking into account the latest results, the current consensus from Innofactor Oyj's twin analysts is for revenues of €84.2m in 2024. This would reflect a reasonable 4.7% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 46% to €0.14. In the lead-up to this report, the analysts had been modelling revenues of €82.1m and earnings per share (EPS) of €0.13 in 2024. So it seems there's been a definite increase in optimism about Innofactor Oyj's future following the latest results, with a solid gain to the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for Innofactor Oyj 13% to €1.53on the back of these upgrades.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 4.7% growth on an annualised basis. That is in line with its 4.4% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 13% annually. So although Innofactor Oyj is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Innofactor Oyj's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Innofactor Oyj going out as far as 2026, and you can see them free on our platform here.

Even so, be aware that Innofactor Oyj is showing 2 warning signs in our investment analysis , you should know about...

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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.