Earnings Miss: Finnair Oyj Missed EPS By 41% And Analysts Are Revising Their Forecasts

Finnair Oyj (HEL:FIA1S) shareholders are probably feeling a little disappointed, since its shares fell 5.2% to €0.033 in the week after its latest annual results. It looks like a pretty bad result, all things considered. Although revenues of €3.0b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 41% to hit €0.022 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Finnair Oyj

Taking into account the latest results, the most recent consensus for Finnair Oyj from four analysts is for revenues of €3.16b in 2024. If met, it would imply a reasonable 5.7% increase on its revenue over the past 12 months. Statutory earnings per share are expected to fall to a breakeven level. In the lead-up to this report, the analysts had been modelling revenues of €3.20b and earnings per share (EPS) of €0.0017 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the new EPS forecasts.

There's been no real change to the consensus price target of €0.046, with Finnair Oyj seemingly executing in line with expectations. 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. The most optimistic Finnair Oyj analyst has a price target of €0.06 per share, while the most pessimistic values it at €0.04. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Finnair Oyj's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.7% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 3.4% a year 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 revenue grow 6.7% per year. So while Finnair Oyj's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at €0.046, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Finnair Oyj going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 4 warning signs we've spotted with Finnair 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.