SSH Communications Security Oyj (HEL:SSH1V) Just Reported Earnings, And Analysts Cut Their Target Price

As you might know, SSH Communications Security Oyj (HEL:SSH1V) recently reported its quarterly numbers. It was a pretty bad result overall; while revenues were in line with expectations at €5.0m, statutory losses exploded to €0.03 per share. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

See our latest analysis for SSH Communications Security Oyj

Taking into account the latest results, the most recent consensus for SSH Communications Security Oyj from solitary analyst is for revenues of €23.0m in 2024. If met, it would imply a decent 12% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 59% to €0.04. Before this earnings announcement, the analyst had been modelling revenues of €23.8m and losses of €0.03 per share in 2024. While this year's revenue estimates dropped there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The consensus price target fell 12% to €1.80, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that SSH Communications Security Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 8.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that SSH Communications Security Oyj is expected to grow much faster than its industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at SSH Communications Security Oyj. They also downgraded SSH Communications Security Oyj's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. 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.

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 analyst estimates for SSH Communications Security Oyj going out as far as 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with SSH Communications Security Oyj (at least 1 which is a bit unpleasant) , and understanding them should be part of your investment process.

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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.