Detection Technology Oyj (HEL:DETEC) just released its latest third-quarter results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.7% to hit €27m. Detection Technology Oyj also reported a statutory profit of €0.13, which was an impressive 27% above what the analysts had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Detection Technology Oyj after the latest results.
After the latest results, the five analysts covering Detection Technology Oyj are now predicting revenues of €116.6m in 2027. If met, this would reflect a meaningful 8.4% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €117.4m and earnings per share (EPS) of €0.70 in 2027. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.
Check out our latest analysis for Detection Technology Oyj
We'd also point out that thatthe analysts have made no major changes to their price target of €9.44. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Detection Technology Oyj, with the most bullish analyst valuing it at €12.00 and the most bearish at €7.30 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 Detection Technology Oyj shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Detection Technology Oyj's past performance and to peers in the same industry. The analysts are definitely expecting Detection Technology Oyj's growth to accelerate, with the forecast 6.7% annualised growth to the end of 2027 ranking favourably alongside historical growth of 3.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Detection Technology Oyj is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.
At least one of Detection Technology Oyj's five analysts has provided estimates out to 2028, which can be seen for free on our platform here.
Before you take the next step you should know about the 2 warning signs for Detection Technology Oyj (1 is a bit concerning!) that we have uncovered.
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