Earnings Release: Here's Why Analysts Cut Their Netum Group Oyj (HEL:NETUM) Price Target To €1.80

Shareholders might have noticed that Netum Group Oyj (HEL:NETUM) filed its second-quarter result this time last week. The early response was not positive, with shares down 4.4% to €1.72 in the past week. Revenues were €10m, with Netum Group Oyj reporting some 7.0% below analyst expectations. Following the result, the analyst has 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

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Following the recent earnings report, the consensus from sole analyst covering Netum Group Oyj is for revenues of €39.7m in 2025. This implies a perceptible 6.8% decline in revenue compared to the last 12 months. Before this latest report, the consensus had been expecting revenues of €41.4m and €0.06 per share in losses. Overall, while there's been a small dip in revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important following the latest results.

Check out our latest analysis for Netum Group Oyj

Intriguingly,the analyst has cut their price target 18% to €1.80 showing a clear decline in sentiment around Netum Group Oyj'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 Netum Group Oyj's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 13% annualised decline to the end of 2025. That is a notable change from historical growth of 18% over the last three years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 6.5% per year. So it's pretty clear that Netum Group Oyj's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The clear low-light was that the analyst cut their forecast revenue estimates for Netum Group Oyj next year. Unfortunately they also downgraded their revenue estimates, and our analyst estimate suggests that Netum Group Oyj is still expected to perform worse than the wider industry. Still, earnings per share are more important to value creation for shareholders. Furthermore, the analyst 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 Netum Group Oyj from one covering analyst, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Netum Group Oyj that 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.