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Here's What Analysts Are Forecasting For Alma Media Oyj (HEL:ALMA) After Its Third-Quarter Results
A week ago, Alma Media Oyj (HEL:ALMA) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. Results were good overall, with revenues beating analyst predictions by 2.7% to hit €84m. Statutory earnings per share (EPS) came in at €0.24, some 4.3% above whatthe analysts had expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the three analysts covering Alma Media Oyj are now predicting revenues of €362.2m in 2027. If met, this would reflect an okay 6.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 18% to €0.96. Yet prior to the latest earnings, the analysts had been anticipated revenues of €356.7m and earnings per share (EPS) of €0.94 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for Alma Media Oyj
The consensus price target was unchanged at €15.80, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Alma Media Oyj analyst has a price target of €16.00 per share, while the most pessimistic values it at €15.50. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Alma Media Oyj's past performance and to peers in the same industry. It's clear from the latest estimates that Alma Media Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 5.2% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 3.4% 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 3.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Alma Media Oyj to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Alma Media Oyj's earnings potential next year. 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 €15.80, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Alma Media 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 Alma Media Oyj going out to 2028, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for Alma Media Oyj that you need to take into consideration.
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