Results: TietoEVRY Oyj Delivered A Surprise Loss And Now Analysts Have New Forecasts

The full-year results for TietoEVRY Oyj (HEL:TIETO) were released last week, making it a good time to revisit its performance. Revenues came in at €2.8b, in line with estimates, while TietoEVRY Oyj reported a statutory loss of €0.53 per share, well short of prior analyst forecasts for a profit. 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 TietoEVRY Oyj

Following last week's earnings report, TietoEVRY Oyj's ten analysts are forecasting 2025 revenues to be €2.79b, approximately in line with the last 12 months. Earnings are expected to improve, with TietoEVRY Oyj forecast to report a statutory profit of €1.46 per share. In the lead-up to this report, the analysts had been modelling revenues of €2.83b and earnings per share (EPS) of €1.52 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at €19.56, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic TietoEVRY Oyj analyst has a price target of €22.75 per share, while the most pessimistic values it at €16.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 0.6% annualised decline to the end of 2025. That is a notable change from historical growth of 4.8% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.5% per year. It's pretty clear that TietoEVRY Oyj's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for TietoEVRY Oyj. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. 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 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. At Simply Wall St, we have a full range of analyst estimates for TietoEVRY Oyj going out to 2027, 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 2 warning signs with TietoEVRY Oyj , and understanding these 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.