TietoEVRY Oyj Just Reported A Surprise Loss: Here's What Analysts Think Will Happen Next

It's been a good week for TietoEVRY Oyj (HEL:TIETO) shareholders, because the company has just released its latest annual results, and the shares gained 8.4% to €19.60. 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. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for TietoEVRY Oyj

Following last week's earnings report, TietoEVRY Oyj's ten analysts are forecasting 2025 revenues to be €2.77b, approximately in line with the last 12 months. Earnings are expected to improve, with TietoEVRY Oyj forecast to report a statutory profit of €1.45 per share. Before this earnings report, the analysts had been forecasting revenues of €2.79b and earnings per share (EPS) of €1.47 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of €19.12, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on TietoEVRY Oyj, with the most bullish analyst valuing it at €22.75 and the most bearish at €16.00 per share. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.0% by the end of 2025. This indicates a significant reduction from annual 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 2.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - TietoEVRY Oyj is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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..

We don't want to rain on the parade too much, but we did also find 2 warning signs for TietoEVRY Oyj that you need to be mindful 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.