Lemonsoft Oyj Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
As you might know, Lemonsoft Oyj (HEL:LEMON) recently reported its third-quarter numbers. Revenues €7.3m disappointed slightly, at2.7% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of €0.09 coming in 12% above what was anticipated. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Lemonsoft Oyj
Taking into account the latest results, the most recent consensus for Lemonsoft Oyj from twin analysts is for revenues of €32.1m in 2025. If met, it would imply a decent 12% increase on its revenue over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of €32.3m and earnings per share (EPS) of €0.28 in 2025. 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 5.1% to €6.45, withthe analysts clearly having become less optimistic about Lemonsoft Oyj'sprospects following its latest earnings.
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. It's pretty clear that there is an expectation that Lemonsoft Oyj's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 9.2% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. 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 most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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 Lemonsoft Oyj's future valuation.
At least one of Lemonsoft Oyj's twin analysts has provided estimates out to 2026, which can be seen for free on our platform here.
It might also be worth considering whether Lemonsoft Oyj's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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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.
About HLSE:LEMON
Lemonsoft Oyj
Designs, develops, and sells enterprise resource planning (ERP) software solutions in Finland and internationally.
Excellent balance sheet and good value.