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Olvi Oyj Just Missed EPS By 12%: Here's What Analysts Think Will Happen Next
It's shaping up to be a tough period for Olvi Oyj (HEL:OLVAS), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Olvi Oyj missed earnings this time around, with €209m revenue coming in 2.3% below what the analysts had modelled. Statutory earnings per share (EPS) of €1.00 also fell short of expectations by 12%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Olvi Oyj from three analysts is for revenues of €786.2m in 2027. If met, it would imply a modest 7.3% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 4.9% to €3.37. Before this earnings report, the analysts had been forecasting revenues of €770.6m and earnings per share (EPS) of €3.44 in 2027. So it's pretty clear consensus is mixed on Olvi Oyj after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.
Check out our latest analysis for Olvi Oyj
The consensus price target was unchanged at €32.33, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Olvi Oyj, with the most bullish analyst valuing it at €37.00 and the most bearish at €30.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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 Olvi Oyj's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 5.8% growth on an annualised basis. This is compared to a historical growth rate of 7.5% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.9% annually. So it's pretty clear that, while Olvi Oyj's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Olvi Oyj. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider 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 Olvi Oyj. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Olvi Oyj analysts - going out to 2028, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Olvi Oyj , and understanding it should be part of your investment process.
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