Earnings Miss: Lemonsoft Oyj Missed EPS By 33% And Analysts Are Revising Their Forecasts

Last week, you might have seen that Lemonsoft Oyj (HEL:LEMON) released its first-quarter result to the market. The early response was not positive, with shares down 4.8% to €5.60 in the past week. It looks like a pretty bad result, all things considered. Although revenues of €6.9m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 33% to hit €0.04 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Lemonsoft Oyj after the latest results.

Check out our latest analysis for Lemonsoft Oyj

Taking into account the latest results, the most recent consensus for Lemonsoft Oyj from two analysts is for revenues of €29.1m in 2024. If met, it would imply an okay 6.3% increase on its revenue over the past 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €29.3m and earnings per share (EPS) of €0.28 in 2024. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

The average price target fell 9.0% to €6.10, withthe analysts clearly having become less optimistic about Lemonsoft Oyj'sprospects following its latest earnings.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Lemonsoft Oyj's revenue growth is expected to slow, with the forecast 8.5% annualised growth rate until the end of 2024 being well below the historical 17% growth over the last year. 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 Lemonsoft Oyj.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

We have estimates for Lemonsoft Oyj from its two analysts out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Lemonsoft 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.