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

Puuilo Oyj (HEL:PUUILO) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Puuilo Oyj reported in line with analyst predictions, delivering revenues of €153m and statutory earnings per share of €0.30, 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, Puuilo Oyj's four analysts are now forecasting revenues of €508.0m in 2027. This would be a credible 7.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 6.3% to €0.82. In the lead-up to this report, the analysts had been modelling revenues of €506.6m and earnings per share (EPS) of €0.81 in 2027. 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.

View our latest analysis for Puuilo Oyj

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €17.75. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Puuilo Oyj at €19.10 per share, while the most bearish prices it at €15.50. This is a very narrow spread of estimates, implying either that Puuilo 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 Puuilo Oyj'shistorical trends, as the 15% annualised revenue growth to the end of 2027 is roughly in line with the 13% 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 10% per year. So although Puuilo Oyj is expected to maintain its revenue growth rate, it's definitely expected to grow faster than 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 major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €17.75, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Puuilo Oyj going out to 2029, and you can see them free on our platform here.

It might also be worth considering whether Puuilo Oyj's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.