Earnings Miss: Relais Group Oyj Missed EPS And Analysts Are Revising Their Forecasts
It's been a good week for Relais Group Oyj (HEL:RELAIS) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.4% to €15.00. Revenues of €110m beat expectations by 3.9%. Unfortunately statutory earnings per share (EPS) fell well short of the mark, turning in a loss of €0.09 compared to previous analyst expectations of a profit. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the four analysts covering Relais Group Oyj are now predicting revenues of €471.2m in 2026. If met, this would reflect a credible 5.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 11% to €0.79. Before this earnings report, the analysts had been forecasting revenues of €464.3m and earnings per share (EPS) of €1.04 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.
View our latest analysis for Relais Group Oyj
It might be a surprise to learn that the consensus price target was broadly unchanged at €17.75, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Relais Group Oyj, with the most bullish analyst valuing it at €18.70 and the most bearish at €17.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Relais Group Oyj's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.4% per year. So it's pretty clear that, while Relais Group Oyj's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Relais Group Oyj. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €17.75, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Relais Group Oyj going out to 2028, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Relais Group Oyj (1 shouldn't be ignored) you should be aware of.
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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.