Earnings Beat: Glaston Oyj Abp Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Glaston Oyj Abp (HEL:GLA1V) shareholders are probably feeling a little disappointed, since its shares fell 3.7% to €1.35 in the week after its latest quarterly results. Revenues of €52m reported a marginal miss, falling short of forecasts by 2.8%, but earnings were better than expected - statutory profits came in at €0.002 per share, a nice change from the loss the analyst expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

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Following last week's earnings report, Glaston Oyj Abp's lone analyst are forecasting 2025 revenues to be €212.2m, approximately in line with the last 12 months. Per-share earnings are expected to leap 63% to €0.073. Before this earnings report, the analyst had been forecasting revenues of €217.0m and earnings per share (EPS) of €0.084 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

View our latest analysis for Glaston Oyj Abp

It'll come as no surprise then, to learn that the analyst has cut their price target 12% to €1.50.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Glaston Oyj Abp's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 1.3% annualised decline to the end of 2025. That is a notable change from historical growth of 5.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Glaston Oyj Abp is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Glaston Oyj Abp. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share 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 Glaston Oyj Abp's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Glaston Oyj Abp going out as far as 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Glaston Oyj Abp has 3 warning signs we think you should be aware 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.