Pihlajalinna Oyj Just Missed Earnings - But Analysts Have Updated Their Models

Last week, you might have seen that Pihlajalinna Oyj (HEL:PIHLIS) released its quarterly result to the market. The early response was not positive, with shares down 2.4% to €8.43 in the past week. Revenues were in line with forecasts, at €122m, although statutory earnings per share came in 16% below what the analysts expected, at €0.19 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. 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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Taking into account the latest results, the consensus forecast from Pihlajalinna Oyj's four analysts is for revenues of €567.0m in 2027. This reflects a reasonable 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 51% to €1.25. Before this earnings report, the analysts had been forecasting revenues of €588.5m and earnings per share (EPS) of €1.39 in 2027. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

See our latest analysis for Pihlajalinna Oyj

It'll come as no surprise then, to learn that the analysts have cut their price target 9.5% to €10.43. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Pihlajalinna Oyj, with the most bullish analyst valuing it at €11.50 and the most bearish at €9.40 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 clear from the latest estimates that Pihlajalinna Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 3.7% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 0.08% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.8% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Pihlajalinna Oyj is expected to grow slower than the wider 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Pihlajalinna Oyj's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Pihlajalinna Oyj. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Pihlajalinna Oyj going out to 2028, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 3 warning signs for Pihlajalinna Oyj (1 is a bit concerning!) that you should be aware of.

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