Earnings Report: GRK Infra Oyj Missed Revenue Estimates By 12%
GRK Infra Oyj (HEL:GRK) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. GRK Infra Oyj reported an earnings miss, with €288m revenues falling 12% short of analyst models, and statutory earnings per share (EPS) of €0.57 also coming in slightly below expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on GRK Infra Oyj after the latest results.
After the latest results, the three analysts covering GRK Infra Oyj are now predicting revenues of €1.03b in 2027. If met, this would reflect a major 26% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 39% to €1.77. In the lead-up to this report, the analysts had been modelling revenues of €1.05b and earnings per share (EPS) of €1.71 in 2027. So the consensus seems to have become somewhat more optimistic on GRK Infra Oyj's earnings potential following these results.
See our latest analysis for GRK Infra Oyj
The consensus price target was unchanged at €25.33, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on GRK Infra Oyj, with the most bullish analyst valuing it at €27.00 and the most bearish at €23.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting GRK Infra Oyj is an easy business to forecast or the the analysts are all using similar assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that GRK Infra Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 14% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect GRK Infra 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 GRK Infra Oyj's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €25.33, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for GRK Infra Oyj going out to 2028, and you can see them free on our platform here..
You still need to take note of risks, for example - GRK Infra Oyj has 1 warning sign we think you should be aware of.
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