Optomed Oyj (HEL:OPTOMED) shareholders are probably feeling a little disappointed, since its shares fell 2.2% to €1.72 in the week after its latest quarterly results. It looks like a moderately negative result overall with revenues falling 14% short of analyst estimates at €3.5m. Statutory losses were €0.05 per share, roughly in line with what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the three analysts covering Optomed Oyj are now predicting revenues of €17.6m in 2026. If met, this would reflect a decent 9.6% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 39% to €0.15. Before this latest report, the consensus had been expecting revenues of €18.0m and €0.17 per share in losses. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.
See our latest analysis for Optomed Oyj
There's been no major changes to the consensus price target of €2.37, suggesting that reduced loss estimates are 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 Optomed Oyj, with the most bullish analyst valuing it at €3.30 and the most bearish at €1.80 per share. 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. It's clear from the latest estimates that Optomed Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 2.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Optomed Oyj is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. 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. We have estimates - from multiple Optomed Oyj analysts - going out to 2028, and you can see them free on our platform here.
You still need to take note of risks, for example - Optomed Oyj has 3 warning signs (and 1 which is concerning) we think you should know about.
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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.