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Analysts Have Made A Financial Statement On Kempower Oyj's (HEL:KEMPOWR) Third-Quarter Report
Kempower Oyj (HEL:KEMPOWR) just released its latest quarterly report and things are not looking great. Unfortunately, Kempower Oyj delivered a serious earnings miss. Revenues of €66m were 12% below expectations, and statutory losses ballooned 71% to €0.06 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from Kempower Oyj's five analysts is for revenues of €342.9m in 2027. This would reflect a huge 24% increase on its revenue over the past 12 months. Kempower Oyj is also expected to turn profitable, with statutory earnings of €0.10 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €345.4m and earnings per share (EPS) of €0.11 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
Check out our latest analysis for Kempower Oyj
It might be a surprise to learn that the consensus price target was broadly unchanged at €10.70, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Kempower Oyj, with the most bullish analyst valuing it at €17.50 and the most bearish at €8.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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 would highlight that Kempower Oyj's revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2027 being well below the historical 26% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.9% annually. Even after the forecast slowdown in growth, it seems obvious that Kempower Oyj is also expected to grow faster 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. Happily, there were no major changes to revenue forecasts, with the business still expected 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Kempower Oyj going out to 2028, and you can see them free on our platform here..
You still need to take note of risks, for example - Kempower Oyj has 1 warning sign we think you should be aware of.
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