Earnings Beat: Nokian Renkaat Oyj Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
As you might know, Nokian Renkaat Oyj (HEL:TYRES) just kicked off its latest quarterly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 5.0% to hit €380m. Nokian Renkaat Oyj also reported a statutory profit of €0.14, which was an impressive 61% above what the analysts had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Nokian Renkaat Oyj after the latest results.
Taking into account the latest results, the consensus forecast from Nokian Renkaat Oyj's nine analysts is for revenues of €1.48b in 2026. This reflects a reasonable 4.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 213% to €0.44. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.46b and earnings per share (EPS) of €0.34 in 2026. Although the revenue estimates have not really changed, we can see there's been a massive increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
See our latest analysis for Nokian Renkaat Oyj
The consensus price target rose 18% to €12.52, 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. The most optimistic Nokian Renkaat Oyj analyst has a price target of €16.50 per share, while the most pessimistic values it at €7.70. 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. One thing stands out from these estimates, which is that Nokian Renkaat Oyj is forecast to grow faster in the future than it has in the past, with revenues expected to display 8.9% annualised growth until the end of 2026. If achieved, this would be a much better result than the 4.1% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 2.7% per year. Not only are Nokian Renkaat Oyj's revenues expected to improve, it seems that the analysts are also expecting it 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 Nokian Renkaat Oyj 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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Nokian Renkaat Oyj. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Nokian Renkaat Oyj going out to 2028, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 2 warning signs for Nokian Renkaat Oyj (1 is a bit concerning!) that you need to be mindful of.
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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.