Shareholders might have noticed that Biohit Oyj (HEL:BIOBV) filed its half-year result this time last week. The early response was not positive, with shares down 4.6% to €2.68 in the past week. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at €7.8m, statutory earnings beat expectations by a notable 33%, coming in at €0.08 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
Taking into account the latest results, Biohit Oyj's sole analyst currently expect revenues in 2026 to be €16.3m, approximately in line with the last 12 months. Statutory earnings per share are forecast to fall 18% to €0.17 in the same period. Before this earnings report, the analyst had been forecasting revenues of €17.0m and earnings per share (EPS) of €0.15 in 2026. While revenue forecasts have been revised downwards, the analyst looks to have become more optimistic on the company's cost base, given the decent improvement in to the earnings per share numbers.
Check out our latest analysis for Biohit Oyj
The analyst has cut their price target 5.7% to €3.30per share, suggesting that the declining revenue was a more crucial indicator than the expected improvement in earnings.
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 pretty clear that there is an expectation that Biohit Oyj's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 11% annually. Factoring in the forecast slowdown in growth, it seems obvious that Biohit Oyj is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Biohit Oyj following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Yet - earnings are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Biohit Oyj's future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Biohit Oyj going out as far as 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 3 warning signs for Biohit Oyj (1 makes us a bit uncomfortable!) 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.