Stock Analysis

Qt Group Oyj Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

HLSE:QTCOM
Source: Shutterstock

It's been a pretty great week for Qt Group Oyj (HEL:QTCOM) shareholders, with its shares surging 15% to €90.15 in the week since its latest full-year results. Revenues were €209m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of €2.26 were also better than expected, beating analyst predictions by 10%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Qt Group Oyj

earnings-and-revenue-growth
HLSE:QTCOM Earnings and Revenue Growth February 18th 2025

After the latest results, the four analysts covering Qt Group Oyj are now predicting revenues of €249.9m in 2025. If met, this would reflect a decent 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 12% to €2.53. In the lead-up to this report, the analysts had been modelling revenues of €252.8m and earnings per share (EPS) of €2.45 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at €91.00, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Qt Group Oyj, with the most bullish analyst valuing it at €100.00 and the most bearish at €80.00 per share. This is a very narrow spread of estimates, implying either that Qt Group Oyj is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 20% growth on an annualised basis. That is in line with its 24% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 13% per year. So although Qt Group Oyj is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Qt Group Oyj's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 Simply Wall St, we have a full range of analyst estimates for Qt Group Oyj going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

Valuation is complex, but we're here to simplify it.

Discover if Qt Group Oyj might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

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.

About HLSE:QTCOM

Qt Group Oyj

Offers cross-platform solutions for the software development lifecycle in Finland, Norway, Germany, the United States, Japan, China, South Korea, France, the United Kingdom, and India.

Outstanding track record with excellent balance sheet.