It's been a mediocre week for Revenio Group Oyj (HEL:REG1V) shareholders, with the stock dropping 19% to €12.90 in the week since its latest second-quarter results. It looks like a pretty bad result, all things considered. Although revenues of €39m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 71% to hit €0.02 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the three analysts covering Revenio Group Oyj are now predicting revenues of €200.2m in 2026. If met, this would reflect a huge 61% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to fall 11% to €0.40 in the same period. Before this earnings report, the analysts had been forecasting revenues of €204.0m and earnings per share (EPS) of €0.46 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.
Check out our latest analysis for Revenio Group Oyj
The average price target fell 16% to €17.20, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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 Revenio Group Oyj analyst has a price target of €19.00 per share, while the most pessimistic values it at €15.60. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Revenio Group Oyj is an easy business to forecast or the the analysts are all using similar assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Revenio Group Oyj's growth to accelerate, with the forecast 159% annualised growth to the end of 2026 ranking favourably alongside historical growth of 8.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 21% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Revenio Group Oyj to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Revenio Group Oyj analysts - going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 4 warning signs we've spotted with Revenio Group Oyj (including 1 which doesn't sit too well with us) .
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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.