Results: Innofactor Oyj Beat Earnings Expectations And Analysts Now Have New Forecasts

The first-quarter results for Innofactor Oyj (HEL:IFA1V) were released last week, making it a good time to revisit its performance. Revenues were €21m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of €0.04 were also better than expected, beating analyst predictions by 14%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Innofactor Oyj

Taking into account the latest results, the consensus forecast from Innofactor Oyj's dual analysts is for revenues of €83.3m in 2024. This reflects a reasonable 2.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 28% to €0.14. In the lead-up to this report, the analysts had been modelling revenues of €84.2m and earnings per share (EPS) of €0.14 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 analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at €1.58, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

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 3.4% annualised growth rate until the end of 2024 being well below the historical 5.0% 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. 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 least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Innofactor Oyj 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.