Analysts Have Made A Financial Statement On TietoEVRY Oyj's (HEL:TIETO) Third-Quarter Report

TietoEVRY Oyj (HEL:TIETO) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results were roughly in line with estimates, with revenues of €655m and statutory earnings per share of €0.32. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on TietoEVRY Oyj after the latest results.

Check out our latest analysis for TietoEVRY Oyj

Following last week's earnings report, TietoEVRY Oyj's eleven analysts are forecasting 2025 revenues to be €2.87b, approximately in line with the last 12 months. Per-share earnings are expected to climb 18% to €1.59. Yet prior to the latest earnings, the analysts had been anticipated revenues of €2.95b and earnings per share (EPS) of €1.66 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The analysts made no major changes to their price target of €20.20, suggesting the downgrades are not expected to have a long-term impact on TietoEVRY Oyj's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic TietoEVRY Oyj analyst has a price target of €24.75 per share, while the most pessimistic values it at €17.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await TietoEVRY Oyj shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TietoEVRY Oyj's past performance and to peers in the same industry. It's pretty clear that there is an expectation that TietoEVRY Oyj's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.4% growth on an annualised basis. This is compared to a historical growth rate of 6.9% 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 2.5% 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 TietoEVRY Oyj.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at €20.20, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on TietoEVRY Oyj. Long-term earnings power is much more important than next year's profits. We have forecasts for TietoEVRY Oyj going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for TietoEVRY Oyj you should be aware of.

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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.