As you might know, Orthex Oyj (HEL:ORTHEX) just kicked off its latest quarterly results with some very strong numbers. The company beat forecasts, with revenue of €26m, some 5.3% above estimates, and statutory earnings per share (EPS) coming in at €0.14, 24% ahead of expectations. The analysts 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, Orthex Oyj's three analysts are now forecasting revenues of €97.8m in 2027. This would be a reasonable 7.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 16% to €0.41. Before this earnings report, the analysts had been forecasting revenues of €96.8m and earnings per share (EPS) of €0.41 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for Orthex Oyj
The consensus price target rose 8.5% to €5.10despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Orthex Oyj's earnings by assigning a price premium. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Orthex Oyj at €5.30 per share, while the most bearish prices it at €5.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Orthex Oyj's growth to accelerate, with the forecast 5.8% annualised growth to the end of 2027 ranking favourably alongside historical growth of 0.8% 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 3.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Orthex Oyj is expected to grow much faster than its industry.
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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Orthex Oyj analysts - going out to 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 1 warning sign for Orthex Oyj that you need to be mindful of.
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