WithSecure Oyj (HEL:WITH) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

As you might know, WithSecure Oyj (HEL:WITH) recently reported its second-quarter numbers. Revenues came in at €37m, in line with forecasts and the company reported a statutory loss of €0.02 per share, roughly in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for WithSecure Oyj

After the latest results, the six analysts covering WithSecure Oyj are now predicting revenues of €150.7m in 2024. If met, this would reflect a credible 3.4% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 72% to €0.044. Before this earnings announcement, the analysts had been modelling revenues of €151.3m and losses of €0.032 per share in 2024. While this year's revenue estimates held steady, there was also a very substantial increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

As a result, there was no major change to the consensus price target of €1.32, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on WithSecure Oyj, with the most bullish analyst valuing it at €1.60 and the most bearish at €1.00 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that WithSecure Oyj's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 6.9% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 12% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 13% annually for the foreseeable future. Although WithSecure Oyj's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €1.32, 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 WithSecure 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 WithSecure Oyj going out to 2026, and you can see them free on our platform here..

You can also see our analysis of WithSecure Oyj's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com