Earnings Miss: Kemira Oyj Missed EPS By 23% And Analysts Are Revising Their Forecasts

Kemira Oyj (HEL:KEMIRA) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at €709m, statutory earnings missed forecasts by an incredible 23%, coming in at just €0.21 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Kemira Oyj's six analysts is for revenues of €2.94b in 2027. This would reflect a satisfactory 7.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 52% to €1.24. In the lead-up to this report, the analysts had been modelling revenues of €2.95b and earnings per share (EPS) of €1.37 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for Kemira Oyj

The average price target fell 6.7% to €17.68, with reduced earnings forecasts clearly tied to a lower valuation estimate. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Kemira Oyj analyst has a price target of €20.00 per share, while the most pessimistic values it at €15.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Kemira Oyj's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.6% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 2.4% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.7% per year. Not only are Kemira Oyj's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kemira Oyj. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Kemira Oyj. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Kemira Oyj analysts - going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Kemira Oyj that we have uncovered.

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