It's been a pretty great week for Harvia Oyj (HEL:HARVIA) shareholders, with its shares surging 16% to €10.55 in the week since its latest first-quarter results. Results overall were respectable, with statutory earnings of €0.13 per share roughly in line with what the analysts had forecast. Revenues of €20m came in 8.9% ahead of analyst predictions. 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 most recent consensus for Harvia Oyj from twin analysts is for revenues of €86.6m in 2020 which, if met, would be a decent 15% increase on its sales over the past 12 months. Per-share earnings are expected to rise 7.7% to €0.54. In the lead-up to this report, the analysts had been modelling revenues of €81.2m and earnings per share (EPS) of €0.45 in 2020. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a substantial gain in earnings per share in particular.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 15% to €11.50 per share.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Harvia Oyj's past performance and to peers in the same industry. Next year brings more of the same, according to the analysts, with revenue forecast to grow 15%, in line with its 16% annual growth over the past year. Compare this with the wider industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.0% next year. So although Harvia Oyj is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Harvia Oyj following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Harvia Oyj going out as far as 2023, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 4 warning signs for Harvia Oyj that you need to be mindful of.
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