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Earnings Beat: Plc Uutechnic Group Oyj Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Plc Uutechnic Group Oyj (HEL:UUTEC) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 4.7% to hit €17m. Plc Uutechnic Group Oyj also reported a statutory profit of €0.02, which was an impressive 100% above what analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Plc Uutechnic Group Oyj

HLSE:UUTEC Past and Future Earnings, February 29th 2020
HLSE:UUTEC Past and Future Earnings, February 29th 2020

Taking into account the latest results, Plc Uutechnic Group Oyj's lone analyst currently expect revenues in 2020 to be €16.8m, approximately in line with the last 12 months. Statutory earnings per share are expected to rise 4.9% to €0.02. In the lead-up to this report, analysts had been modelling revenues of €15.8m and earnings per share (EPS) of €0.03 in 2020. While next year's revenue estimates increased, there was also a pretty serious reduction to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

The consensus price target was unchanged at €0.36, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts.

Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. These estimates imply that sales are expected to slow, with a forecast revenue decline of 1.0% a significant reduction from annual growth of 5.1% over the last five years. Compare this with our data, which suggests that other companies in the same market are, in aggregate, expected to see their revenue grow 5.7% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - analysts also expect Plc Uutechnic Group Oyj to grow slower than the wider market.

The Bottom Line

The most important thing to take away is that analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider market. The consensus price target held steady at €0.36, with the latest estimates not enough to have an impact on analysts' estimated valuations.

With that in mind, we wouldn't be too quick to come to a conclusion on Plc Uutechnic Group Oyj. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2022, which can be seen for free on our platform here.

It might also be worth considering whether Plc Uutechnic Group Oyj's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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