Vaisala Oyj Just Beat EPS By 15%: Here's What Analysts Think Will Happen Next
Investors in Vaisala Oyj (HEL:VAIAS) had a good week, as its shares rose 4.8% to close at €65.70 following the release of its quarterly results. Revenues were €163m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of €0.79 were also better than expected, beating analyst predictions by 15%. 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.
After the latest results, the five analysts covering Vaisala Oyj are now predicting revenues of €688.9m in 2027. If met, this would reflect a decent 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 25% to €2.60. In the lead-up to this report, the analysts had been modelling revenues of €679.4m and earnings per share (EPS) of €2.43 in 2027. So the consensus seems to have become somewhat more optimistic on Vaisala Oyj's earnings potential following these results.
See our latest analysis for Vaisala Oyj
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.6% to €66.00. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Vaisala Oyj analyst has a price target of €73.00 per share, while the most pessimistic values it at €58.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Vaisala Oyj is an easy business to forecast or the the analysts are all using similar 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. It's clear from the latest estimates that Vaisala Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 9.7% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 6.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Vaisala Oyj to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Vaisala Oyj's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Vaisala Oyj analysts - going out to 2028, and you can see them free on our platform here.
You can also see our analysis of Vaisala Oyj's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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