Earnings Miss: Tecnotree Oyj Missed EPS By 54% And Analysts Are Revising Their Forecasts

Tecnotree Oyj (HEL:TEM1V) just released its latest quarterly report and things are not looking great. Results showed a clear earnings miss, with €19m revenue coming in 7.9% lower than what the analystsexpected. Statutory earnings per share (EPS) of €0.12 missed the mark badly, arriving some 54% below what was expected. Following the result, the analysts have 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Tecnotree Oyj

Taking into account the latest results, the current consensus from Tecnotree Oyj's two analysts is for revenues of €80.3m in 2024. This would reflect a reasonable 2.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 43% to €0.84. Yet prior to the latest earnings, the analysts had been anticipated revenues of €82.6m and earnings per share (EPS) of €0.57 in 2024. Although the analysts have lowered their revenue forecasts, they've also made a massive increase in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.

The consensus has made no major changes to the price target of €5.50, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Tecnotree Oyj's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.7% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Tecnotree Oyj.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Tecnotree Oyj's earnings potential next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Yet - earnings are more important to the intrinsic value of the business. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Tecnotree Oyj (of which 1 is concerning!) you should know about.

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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.