Loihde Oyj (HEL:LOIHDE) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Loihde Oyj (HEL:LOIHDE) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 3.2%to hit €35m. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Loihde Oyj after the latest results.

View our latest analysis for Loihde Oyj

Following last week's earnings report, Loihde Oyj's two analysts are forecasting 2024 revenues to be €135.8m, approximately in line with the last 12 months. Statutory earnings per share are predicted to shoot up 37% to €0.44. Yet prior to the latest earnings, the analysts had been anticipated revenues of €135.9m and earnings per share (EPS) of €0.40 in 2024. So the consensus seems to have become somewhat more optimistic on Loihde Oyj's earnings potential following these results.

There's been no major changes to the consensus price target of €12.60, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Loihde Oyj's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Loihde Oyj's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 0.3% growth on an annualised basis. This is compared to a historical growth rate of 9.8% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 14% 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 Loihde Oyj.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Loihde Oyj's earnings potential next year. 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 held steady at €12.60, with the latest estimates not enough to have an impact on their price targets.

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 Loihde Oyj you should be aware of.

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

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.