Earnings Release: Here's Why Analysts Cut Their Tecnotree Oyj (HEL:TEM1V) Price Target To €0.35

Last week, you might have seen that Tecnotree Oyj (HEL:TEM1V) released its full-year result to the market. The early response was not positive, with shares down 2.7% to €0.29 in the past week. It was a credible result overall, with revenues of €79m and statutory earnings per share of €0.04 both in line with analyst estimates, showing that Tecnotree Oyj is executing in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Tecnotree Oyj

After the latest results, the dual analysts covering Tecnotree Oyj are now predicting revenues of €83.0m in 2024. If met, this would reflect a credible 5.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to sink 15% to €0.03 in the same period. Before this earnings report, the analysts had been forecasting revenues of €84.9m and earnings per share (EPS) of €0.04 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 33% to €0.35.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. 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 5.5% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. 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 concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Tecnotree Oyj. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Tecnotree Oyj going out as far as 2026, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Tecnotree Oyj (including 1 which can't be ignored) .

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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.