Earnings Miss: Digia Oyj Missed EPS By 43% And Analysts Are Revising Their Forecasts
It's shaping up to be a tough period for Digia Oyj (HEL:DIGIA), which a week ago released some disappointing second-quarter results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at €54m, statutory earnings missed forecasts by an incredible 43%, coming in at just €0.06 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following last week's earnings report, Digia Oyj's dual analysts are forecasting 2026 revenues to be €220.6m, approximately in line with the last 12 months. Per-share earnings are expected to rise 2.1% to €0.46. In the lead-up to this report, the analysts had been modelling revenues of €222.2m and earnings per share (EPS) of €0.51 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
See our latest analysis for Digia Oyj
The consensus price target held steady at €7.55, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.
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. We would highlight that Digia Oyj's revenue growth is expected to slow, with the forecast 0.4% annualised growth rate until the end of 2026 being well below the historical 8.2% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 0.9% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Digia Oyj.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Digia Oyj. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Digia Oyj. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Digia Oyj going out as far as 2028, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Digia 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.