Qt Group Oyj Just Missed Earnings - But Analysts Have Updated Their Models

The analysts might have been a bit too bullish on Qt Group Oyj (HEL:QTCOM), given that the company fell short of expectations when it released its quarterly results last week. Unfortunately, Qt Group Oyj delivered a serious earnings miss. Revenues of €47m were 11% below expectations, and statutory earnings per share of €0.20 missed estimates by 49%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

We've discovered 1 warning sign about Qt Group Oyj. View them for free.

Following the latest results, Qt Group Oyj's four analysts are now forecasting revenues of €233.3m in 2025. This would be a decent 10% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be €2.11, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €243.4m and earnings per share (EPS) of €2.46 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

See our latest analysis for Qt Group Oyj

The consensus price target fell 6.2% to €89.33, with the weaker earnings outlook clearly leading valuation estimates. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Qt Group Oyj, with the most bullish analyst valuing it at €110 and the most bearish at €78.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Qt Group Oyj's revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2025 being well below the historical 23% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10% per year. So it's pretty clear that, while Qt Group Oyj's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster 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 Qt Group Oyj's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Qt Group Oyj. Long-term earnings power is much more important than next year's profits. We have forecasts for Qt Group Oyj going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Qt Group Oyj that we have uncovered.

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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.