Qt Group Oyj Just Recorded A 100% EPS Beat: Here's What Analysts Are Forecasting Next
Qt Group Oyj (HEL:QTCOM) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat forecasts, with revenue of €52m, some 8.7% above estimates, and statutory earnings per share (EPS) coming in at €0.04, 100% ahead of expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from Qt Group Oyj's four analysts is for revenues of €264.9m in 2027. This reflects a solid 9.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 104% to €1.80. Before this earnings report, the analysts had been forecasting revenues of €262.3m and earnings per share (EPS) of €1.76 in 2027. So the consensus seems to have become somewhat more optimistic on Qt Group Oyj's earnings potential following these results.
View our latest analysis for Qt Group Oyj
There's been no major changes to the consensus price target of €34.25, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Qt Group Oyj, with the most bullish analyst valuing it at €38.00 and the most bearish at €27.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Qt Group Oyj shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Qt Group Oyj's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 7.2% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Qt Group Oyj.
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 Qt Group Oyj 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 Qt Group Oyj. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Qt Group Oyj analysts - 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 Qt Group Oyj (1 is significant!) that you need to be mindful of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.