Earnings Update: Elisa Oyj (HEL:ELISA) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

Shareholders might have noticed that Elisa Oyj (HEL:ELISA) filed its full-year result this time last week. The early response was not positive, with shares down 2.7% to €42.36 in the past week. Elisa Oyj reported in line with analyst predictions, delivering revenues of €2.2b and statutory earnings per share of €2.34, suggesting the business is executing well and in line with its plan. 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 Elisa Oyj

Following last week's earnings report, Elisa Oyj's 17 analysts are forecasting 2024 revenues to be €2.22b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 3.8% to €2.43. Before this earnings report, the analysts had been forecasting revenues of €2.24b and earnings per share (EPS) of €2.45 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of €48.24, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Elisa Oyj at €66.00 per share, while the most bearish prices it at €38.00. 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.

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. We would highlight that Elisa Oyj's revenue growth is expected to slow, with the forecast 1.8% annualised growth rate until the end of 2024 being well below the historical 4.2% p.a. growth over the last five years. Compare this to the 77 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 2.0% per year. So it's pretty clear that, while Elisa Oyj's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Elisa 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 Elisa Oyj going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for Elisa Oyj (of which 1 is concerning!) 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.