Earnings Miss: Oriola Oyj Missed EPS And Analysts Are Revising Their Forecasts
Last week saw the newest quarterly earnings release from Oriola Oyj (HEL:ORIOLA), an important milestone in the company's journey to build a stronger business. Revenues fell 2.9% short of expectations, at €52m. Earnings correspondingly dipped, with Oriola Oyj reporting a statutory loss of €0.01 per share, whereas the analysts had previously modelled a profit in this period. 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.
After the latest results, the consensus from Oriola Oyj's four analysts is for revenues of €207.4m in 2026, which would reflect a sizeable 89% decline in revenue compared to the last year of performance. Oriola Oyj is also expected to turn profitable, with statutory earnings of €0.01 per share. Before this earnings report, the analysts had been forecasting revenues of €208.9m and earnings per share (EPS) of €0.025 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.
View our latest analysis for Oriola Oyj
The consensus price target held steady at €0.99, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Oriola Oyj, with the most bullish analyst valuing it at €1.00 and the most bearish at €0.97 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 99% by the end of 2026. This indicates a significant reduction from annual growth of 1.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.1% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Oriola Oyj is expected to lag 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 Oriola Oyj. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Oriola Oyj's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €0.99, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Oriola 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 Oriola Oyj that you need to take into consideration.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.