Lassila & Tikanoja Plc Just Missed Earnings - But Analysts Have Updated Their Models
It's been a good week for Lassila & Tikanoja Plc (HEL:LASTIK) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.3% to €7.01. Revenue of €116m surpassed estimates by 2.8%, although statutory earnings per share missed badly, coming in 42% below expectations at €0.14 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for Lassila & Tikanoja from three analysts is for revenues of €445.1m in 2026. If met, it would imply a credible 2.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 24% to €0.58. Before this earnings report, the analysts had been forecasting revenues of €441.8m and earnings per share (EPS) of €0.67 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.
View our latest analysis for Lassila & Tikanoja
The consensus price target held steady at €8.40, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Lassila & Tikanoja, with the most bullish analyst valuing it at €8.50 and the most bearish at €8.30 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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 Lassila & Tikanoja's rate of growth is expected to accelerate meaningfully, with the forecast 4.2% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 3.4% over the past year. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.3% annually. So it's clear that despite the acceleration in growth, Lassila & Tikanoja is expected to grow meaningfully slower than the industry average.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Lassila & Tikanoja. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Lassila & Tikanoja's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €8.40, with the latest estimates not enough to have an impact on their price targets.
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 estimates - from multiple Lassila & Tikanoja analysts - going out to 2028, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Lassila & Tikanoja , and understanding these should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.