Results: Vaisala Oyj Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, Vaisala Oyj (HEL:VAIAS) just kicked off its latest second-quarter results with some very strong numbers. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 11% higher than the analysts had forecast, at €148m, while EPS were €0.49 beating analyst models by 55%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Vaisala Oyj

Following the latest results, Vaisala Oyj's four analysts are now forecasting revenues of €563.9m in 2024. This would be a reasonable 4.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 9.6% to €1.64. Before this earnings report, the analysts had been forecasting revenues of €545.6m and earnings per share (EPS) of €1.49 in 2024. So it seems there's been a definite increase in optimism about Vaisala Oyj's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for Vaisala Oyj 11% to €47.00on the back of these upgrades. 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. Currently, the most bullish analyst values Vaisala Oyj at €50.00 per share, while the most bearish prices it at €44.00. This is a very narrow spread of estimates, implying either that Vaisala Oyj is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Vaisala Oyj'shistorical trends, as the 9.8% annualised revenue growth to the end of 2024 is roughly in line with the 8.4% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.2% per year. So it's pretty clear that Vaisala Oyj is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Vaisala Oyj following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Vaisala Oyj. Long-term earnings power is much more important than next year's profits. We have forecasts for Vaisala Oyj going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Vaisala Oyj that you need to take into consideration.

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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