Earnings Beat: Verkkokauppa.com Oyj Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Last week saw the newest third-quarter earnings release from Verkkokauppa.com Oyj (HEL:VERK), an important milestone in the company's journey to build a stronger business. Results look mixed - while revenue fell marginally short of analyst estimates at €134m, statutory earnings beat expectations 9.1%, with Verkkokauppa.com Oyj reporting profits of €0.08 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Verkkokauppa.com Oyj after the latest results.
After the latest results, the three analysts covering Verkkokauppa.com Oyj are now predicting revenues of €572.1m in 2027. If met, this would reflect a satisfactory 5.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 23% to €0.30. Before this earnings report, the analysts had been forecasting revenues of €577.3m and earnings per share (EPS) of €0.29 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Verkkokauppa.com Oyj
There's been no major changes to the consensus price target of €4.23, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Verkkokauppa.com Oyj at €4.40 per share, while the most bearish prices it at €4.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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. One thing stands out from these estimates, which is that Verkkokauppa.com Oyj is forecast to grow faster in the future than it has in the past, with revenues expected to display 4.2% annualised growth until the end of 2027. If achieved, this would be a much better result than the 2.4% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.3% annually for the foreseeable future. So although Verkkokauppa.com Oyj's revenue growth is expected to improve, it is still expected to grow slower than the industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Verkkokauppa.com Oyj's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Verkkokauppa.com Oyj's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €4.23, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Verkkokauppa.com Oyj going out to 2028, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for Verkkokauppa.com Oyj (1 is a bit unpleasant!) that you need to take into consideration.
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