Analysts Have Made A Financial Statement On Detection Technology Oyj's (HEL:DETEC) Yearly Report

It's been a good week for Detection Technology Oyj (HEL:DETEC) shareholders, because the company has just released its latest full-year results, and the shares gained 9.5% to €15.50. Detection Technology Oyj reported €108m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €0.76 beat expectations, being 3.5% higher than what the analysts expected. 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.

See our latest analysis for Detection Technology Oyj

Taking into account the latest results, the consensus forecast from Detection Technology Oyj's five analysts is for revenues of €116.7m in 2025. This reflects a meaningful 8.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 12% to €0.85. Yet prior to the latest earnings, the analysts had been anticipated revenues of €116.5m and earnings per share (EPS) of €0.89 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at €19.02, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Detection Technology Oyj, with the most bullish analyst valuing it at €25.00 and the most bearish at €17.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. The analysts are definitely expecting Detection Technology Oyj's growth to accelerate, with the forecast 8.5% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.0% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.6% per year. Detection Technology Oyj is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Detection Technology Oyj. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at €19.02, with the latest estimates not enough to have an impact on their price targets.

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 Detection Technology Oyj going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Detection Technology Oyj .

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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.