Analysts Have Made A Financial Statement On SSH Communications Security Oyj's (HEL:SSH1V) Third-Quarter Report
SSH Communications Security Oyj (HEL:SSH1V) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like the results were pretty good overall. While revenues of €5.7m were in line with analyst predictions, statutory losses were much smaller than expected, with SSH Communications Security Oyj losing €0.01 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus from SSH Communications Security Oyj's two analysts is for revenues of €26.7m in 2027. This would reflect a major 21% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 74% to €0.02. Before this earnings announcement, the analysts had been modelling revenues of €27.4m and losses of €0.015 per share in 2027. So it's pretty clear the analysts have mixed opinions on SSH Communications Security Oyj after this update; revenues were downgraded and per-share losses expected to increase.
See our latest analysis for SSH Communications Security Oyj
There was no major change to the consensus price target of €2.25, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SSH Communications Security Oyj's past performance and to peers in the same industry. The analysts are definitely expecting SSH Communications Security Oyj's growth to accelerate, with the forecast 16% annualised growth to the end of 2027 ranking favourably alongside historical growth of 6.6% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SSH Communications Security Oyj to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for SSH Communications Security Oyj that you should be aware of.
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