As you might know, Outokumpu Oyj (HEL:OUT1V) last week released its latest second-quarter, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at €1.6b, statutory earnings missed forecasts by an incredible 41%, coming in at just €0.05 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 current consensus from Outokumpu Oyj's eleven analysts is for revenues of €6.29b in 2026. This would reflect a decent 15% increase on its revenue over the past 12 months. Outokumpu Oyj is also expected to turn profitable, with statutory earnings of €0.22 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.24b and earnings per share (EPS) of €0.22 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
Check out our latest analysis for Outokumpu Oyj
The analysts reconfirmed their price target of €5.68, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Outokumpu Oyj at €7.60 per share, while the most bearish prices it at €3.90. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying 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. For example, we noticed that Outokumpu Oyj's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 31% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 8.3% a year 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 4.0% per year. So it looks like Outokumpu Oyj is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Outokumpu Oyj going out to 2028, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Outokumpu Oyj that you should be aware 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.