Innofactor Oyj Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next

It's been a sad week for Innofactor Oyj (HEL:IFA1V), who've watched their investment drop 13% to €1.13 in the week since the company reported its second-quarter result. Revenues fell 3.8% short of expectations, at €20m. Earnings correspondingly dipped, with Innofactor Oyj reporting a statutory loss of €0.01 per share, whereas the analysts had previously modelled a profit in this period. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Innofactor Oyj

Following last week's earnings report, Innofactor Oyj's twin analysts are forecasting 2024 revenues to be €82.0m, approximately in line with the last 12 months. Per-share earnings are expected to step up 14% to €0.095. Before this earnings report, the analysts had been forecasting revenues of €83.3m and earnings per share (EPS) of €0.14 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

The average price target fell 15% to €1.30, with reduced earnings forecasts clearly tied to a lower valuation estimate.

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. We would highlight that Innofactor Oyj's revenue growth is expected to slow, with the forecast 2.5% annualised growth rate until the end of 2024 being well below the historical 5.3% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Innofactor Oyj.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Innofactor Oyj. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Innofactor Oyj's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Innofactor Oyj's future valuation.

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.

It is also worth noting that we have found 2 warning signs for Innofactor Oyj that you need to take into consideration.

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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.

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