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SSH Communications Security Oyj (HEL:SSH1V) Released Earnings Last Week And Analysts Lifted Their Price Target To €1.80
It's been a good week for SSH Communications Security Oyj (HEL:SSH1V) shareholders, because the company has just released its latest annual results, and the shares gained 5.8% to €1.19. Revenues were in line with expectations, at €22m, while statutory losses ballooned to €0.10 per share. 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.
View our latest analysis for SSH Communications Security Oyj
Taking into account the latest results, the most recent consensus for SSH Communications Security Oyj from one analyst is for revenues of €25.0m in 2025. If met, it would imply a decent 13% increase on its revenue over the past 12 months. SSH Communications Security Oyj is also expected to turn profitable, with statutory earnings of €0.01 per share. Before this earnings announcement, the analyst had been modelling revenues of €27.0m and losses of €0.01 per share in 2025. While we note the minor downgrade to to the revenue outlook, the analyst is now also predicting for the business to become profitable next year - sooner than previously forecast - which looks like a pretty clear lift in expectations.
There's been a 13% lift in the price target to €1.80, with the analyst signalling that the higher earnings forecasts are more relevant to the business than the weaker revenue estimates.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of SSH Communications Security Oyj'shistorical trends, as the 13% annualised revenue growth to the end of 2025 is roughly in line with the 13% 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 although SSH Communications Security Oyj is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The most important thing to take away is that the analyst now expect SSH Communications Security Oyj to become profitable next year, compared to previous expectations that it would report a loss. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Even so, long term profitability is more important for the value creation process. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on SSH Communications Security Oyj. Long-term earnings power is much more important than next year's profits. We have analyst estimates for SSH Communications Security Oyj going out as far as 2027, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for SSH Communications Security Oyj you should know about.
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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:SSH1V
SSH Communications Security Oyj
Operates as a cybersecurity company for humans, systems, and networks in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.
Flawless balance sheet with reasonable growth potential.
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