Incap Oyj (HEL:ICP1V) Just Reported And Analysts Have Been Cutting Their Estimates

Shareholders of Incap Oyj (HEL:ICP1V) will be pleased this week, given that the stock price is up 18% to €8.59 following its latest annual results. Revenues of €222m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €0.68, missing estimates by 2.9%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 Incap Oyj

After the latest results, the consensus from Incap Oyj's dual analysts is for revenues of €214.0m in 2024, which would reflect a perceptible 3.4% decline in revenue compared to the last year of performance. Statutory earnings per share are expected to crater 21% to €0.53 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €249.0m and earnings per share (EPS) of €0.73 in 2024. Indeed, we can see that the analysts are a lot more bearish about Incap Oyj's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

It'll come as no surprise then, to learn that the analysts have cut their price target 15% to €9.00.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.4% by the end of 2024. This indicates a significant reduction from annual growth of 32% 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 4.8% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Incap Oyj is expected to lag 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 Incap Oyj. 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Incap Oyj's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Even so, be aware that Incap Oyj is showing 1 warning sign in our investment analysis , you should know about...

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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.