Results: Nokian Renkaat Oyj Exceeded Expectations And The Consensus Has Updated Its Estimates
It's been a good week for Nokian Renkaat Oyj (HEL:TYRES) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.7% to €13.75. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at €359m, statutory earnings beat expectations by a notable 18%, coming in at €0.17 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are 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 analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Nokian Renkaat Oyj's nine analysts is for revenues of €1.60b in 2027. This reflects a decent 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 185% to €0.76. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.62b and earnings per share (EPS) of €0.77 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Nokian Renkaat Oyj
There were no changes to revenue or earnings estimates or the price target of €13.59, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Nokian Renkaat Oyj at €15.50 per share, while the most bearish prices it at €10.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Nokian Renkaat Oyj shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Nokian Renkaat Oyj's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 9.3% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 3.3% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 2.5% per year. So it looks like Nokian Renkaat Oyj is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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. The consensus price target held steady at €13.59, 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 Nokian Renkaat Oyj. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Nokian Renkaat Oyj analysts - going out to 2028, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Nokian Renkaat Oyj that you should be aware of.
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