Lindex Group Oyj Just Missed EPS By 10%: Here's What Analysts Think Will Happen Next
Investors in Lindex Group Oyj (HEL:LINDEX) had a good week, as its shares rose 3.4% to close at €2.25 following the release of its second-quarter results. It was not a great result overall. While revenues of €260m were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 10% to hit €0.09 per share. The analyst 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.
Following last week's earnings report, Lindex Group Oyj's sole analyst are forecasting 2026 revenues to be €971.0m, approximately in line with the last 12 months. Statutory earnings per share are expected to decrease 3.1% to €0.17 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of €972.0m and earnings per share (EPS) of €0.18 in 2026. The analyst 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.
View our latest analysis for Lindex Group Oyj
It might be a surprise to learn that the consensus price target was broadly unchanged at €2.70, with the analyst clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.
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. It's clear from the latest estimates that Lindex Group Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 1.3% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 10% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Lindex Group Oyj is expected to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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 Lindex Group Oyj. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Lindex Group Oyj going out as far as 2028, and you can see them free on our platform here.
We also provide an overview of the Lindex Group Oyj Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.