Orion Oyj Just Beat EPS By 5.4%: Here's What Analysts Think Will Happen Next
It's been a good week for Orion Oyj (HEL:ORNBV) shareholders, because the company has just released its latest quarterly results, and the shares gained 8.3% to €100.00. The result was positive overall - although revenues of €542m were in line with what the analysts predicted, Orion Oyj surprised by delivering a statutory profit of €1.19 per share, modestly greater than 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the six analysts covering Orion Oyj are now predicting revenues of €2.41b in 2027. If met, this would reflect a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 7.2% to €5.03. Before this earnings report, the analysts had been forecasting revenues of €2.38b and earnings per share (EPS) of €4.75 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Orion Oyj
The consensus price target rose 13% to €87.50, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. There are some variant perceptions on Orion Oyj, with the most bullish analyst valuing it at €115 and the most bearish at €55.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Orion Oyj's revenue growth is expected to slow, with the forecast 8.5% annualised growth rate until the end of 2027 being well below the historical 14% 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 5.4% annually. Even after the forecast slowdown in growth, it seems obvious that Orion Oyj is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Orion Oyj following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Orion Oyj analysts - going out to 2028, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Orion Oyj you should know about.
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