Terveystalo Oyj Just Missed EPS By 15%: Here's What Analysts Think Will Happen Next
As you might know, Terveystalo Oyj (HEL:TTALO) last week released its latest second-quarter, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at €293m, statutory earnings missed forecasts by 15%, coming in at just €0.11 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, Terveystalo Oyj's three analysts currently expect revenues in 2026 to be €1.20b, approximately in line with the last 12 months. Per-share earnings are expected to increase 5.8% to €0.57. Before this earnings report, the analysts had been forecasting revenues of €1.23b and earnings per share (EPS) of €0.62 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
Check out our latest analysis for Terveystalo Oyj
Despite the cuts to forecast earnings, there was no real change to the €8.75 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. There are some variant perceptions on Terveystalo Oyj, with the most bullish analyst valuing it at €9.90 and the most bearish at €7.60 per share. This is a very narrow spread of estimates, implying either that Terveystalo Oyj is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.6% by the end of 2026. This indicates a significant reduction from annual growth of 2.4% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.1% per year. It's pretty clear that Terveystalo Oyj's revenues are expected to perform substantially worse 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. 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 held steady at €8.75, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Terveystalo Oyj. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Terveystalo Oyj analysts - going out to 2028, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for Terveystalo Oyj 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.