Qt Group Oyj Just Beat EPS By 23%: Here's What Analysts Think Will Happen Next

It's been a pretty great week for Qt Group Oyj (HEL:QTCOM) shareholders, with its shares surging 15% to €88.55 in the week since its latest quarterly results. It looks like a credible result overall - although revenues of €53m were what the analysts expected, Qt Group Oyj surprised by delivering a (statutory) profit of €0.53 per share, an impressive 23% above what was forecast. 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. 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

Taking into account the latest results, the consensus forecast from Qt Group Oyj's five analysts is for revenues of €219.6m in 2024. This reflects a decent 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 20% to €2.08. Before this earnings report, the analysts had been forecasting revenues of €219.1m and earnings per share (EPS) of €1.95 in 2024. So the consensus seems to have become somewhat more optimistic on Qt Group Oyj's earnings potential following these results.

There's been no major changes to the consensus price target of €80.75, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Qt Group Oyj at €98.00 per share, while the most bearish prices it at €48.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 26% growth on an annualised basis. That is in line with its 27% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So it's pretty clear that Qt Group Oyj is forecast to grow substantially faster than its 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. The consensus price target held steady at €80.75, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Qt Group Oyj analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Qt Group Oyj has 1 warning sign we think 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.