Last week saw the newest second-quarter earnings release from Loihde Oyj (HEL:LOIHDE), an important milestone in the company's journey to build a stronger business. The result was fairly weak overall, with revenues of €34m being 5.3% less than what the analyst had been modelling. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.
Following last week's earnings report, Loihde Oyj's lone analyst are forecasting 2026 revenues to be €143.9m, approximately in line with the last 12 months. Statutory per-share earnings are expected to be €0.64, roughly flat on the last 12 months. Before this earnings report, the analyst had been forecasting revenues of €146.0m and earnings per share (EPS) of €0.81 in 2026. The analyst seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.
See our latest analysis for Loihde Oyj
The consensus price target held steady at €14.00, with the analyst seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Loihde Oyj's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 6.6% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 11% annually. Factoring in the forecast slowdown in growth, it seems obvious that Loihde Oyj is also expected to grow slower than other industry participants.
The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Loihde Oyj. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €14.00, with the latest estimates not enough to have an impact on their price target.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Loihde Oyj going out as far as 2028, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Loihde Oyj that you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.