U.S. markets open in 6 hours 38 minutes
  • S&P Futures

    +2.25 (+0.05%)
  • Dow Futures

    +86.00 (+0.25%)
  • Nasdaq Futures

    -40.50 (-0.30%)
  • Russell 2000 Futures

    +2.80 (+0.12%)
  • Crude Oil

    +0.45 (+0.69%)
  • Gold

    +3.60 (+0.20%)
  • Silver

    +0.33 (+1.21%)

    -0.0003 (-0.02%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • Vix

    -1.70 (-9.24%)

    +0.0078 (+0.55%)

    +0.3750 (+0.35%)

    +454.39 (+0.78%)
  • CMC Crypto 200

    +133.10 (+9.27%)
  • FTSE 100

    +53.54 (+0.76%)
  • Nikkei 225

    +160.52 (+0.55%)

Here's What Analysts Are Forecasting For Elisa Oyj After Its Annual Results

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

It's been a mediocre week for Elisa Oyj (HEL:ELISA) shareholders, with the stock dropping 18% to €43.39 in the week since its latest yearly results. It was a credible result overall, with revenues of €1.8b and statutory earnings per share of €1.90 both in line with analyst estimates, showing that Elisa Oyj is executing in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what analysts are expecting for next year.

View our latest analysis for Elisa Oyj

HLSE:ELISA Past and Future Earnings, March 15th 2020
HLSE:ELISA Past and Future Earnings, March 15th 2020

After the latest results, the 15 analysts covering Elisa Oyj are now predicting revenues of €1.88b in 2020. If met, this would reflect a credible 2.1% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to rise 8.1% to €2.05. Before this earnings report, analysts had been forecasting revenues of €1.88b and earnings per share (EPS) of €2.05 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €45.89. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Elisa Oyj, with the most bullish analyst valuing it at €60.80 and the most bearish at €30.50 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the Elisa Oyj's past performance and to peers in the same market. We would highlight that Elisa Oyj's revenue growth is expected to slow, with forecast 2.1% increase next year well below the historical 4.5%p.a. growth over the last five years. Compare this to the other companies in this market with analyst coverage, which are forecast to grow their revenue at 2.0% per year. So it's pretty clear that, while Elisa Oyj's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider market. 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.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Elisa Oyj analysts - going out to 2024, and you can see them free on our platform here.

It might also be worth considering whether Elisa 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.