Orion Oyj (HEL:ORNBV) Just Released Its Second-Quarter Earnings: Here's What Analysts Think
It's been a pretty great week for Orion Oyj (HEL:ORNBV) shareholders, with its shares surging 13% to €76.55 in the week since its latest quarterly results. It was a workmanlike result, with revenues of €522m coming in 3.4% ahead of expectations, and statutory earnings per share of €1.00, in line with analyst appraisals. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, Orion Oyj's six analysts currently expect revenues in 2026 to be €2.09b, approximately in line with the last 12 months. Statutory earnings per share are expected to decrease 2.5% to €4.06 in the same period. Before this earnings report, the analysts had been forecasting revenues of €2.08b and earnings per share (EPS) of €3.91 in 2026. So the consensus seems to have become somewhat more optimistic on Orion Oyj's earnings potential following these results.
Check out our latest analysis for Orion Oyj
The consensus price target was unchanged at €76.50, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Orion Oyj analyst has a price target of €86.00 per share, while the most pessimistic values it at €55.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Orion Oyj's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Orion Oyj's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.6% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that Orion Oyj is also expected to grow slower than other industry participants.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Orion Oyj's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 in mind, we wouldn't be too quick to come to a conclusion on Orion Oyj. Long-term earnings power is much more important than next year's profits. We have forecasts for Orion Oyj going out to 2028, and you can see them free on our platform here.
It might also be worth considering whether Orion Oyj's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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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.