Analysts Have Made A Financial Statement On Elisa Oyj's (HEL:ELISA) Second-Quarter Report

Elisa Oyj (HEL:ELISA) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to €42.36 in the week after its latest second-quarter results. Results were roughly in line with estimates, with revenues of €541m and statutory earnings per share of €0.57. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Elisa Oyj

Following last week's earnings report, Elisa Oyj's 17 analysts are forecasting 2024 revenues to be €2.20b, approximately in line with the last 12 months. Statutory per share are forecast to be €2.34, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €2.20b and earnings per share (EPS) of €2.38 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €47.51. 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 Elisa Oyj, with the most bullish analyst valuing it at €65.00 and the most bearish at €38.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Elisa Oyj shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Elisa Oyj's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Elisa Oyj's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.8% growth on an annualised basis. This is compared to a historical growth rate of 4.3% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.0% annually. Factoring in the forecast slowdown in growth, it looks like Elisa Oyj is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Elisa Oyj going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Elisa Oyj (1 makes us a bit uncomfortable!) that we have uncovered.

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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