Kreate Group Oyj Just Missed EPS By 12%: Here's What Analysts Think Will Happen Next
There's been a major selloff in Kreate Group Oyj (HEL:KREATE) shares in the week since it released its quarterly report, with the stock down 28% to €28.60. Revenues were in line with forecasts, at €210m, although statutory earnings per share came in 12% below what the analyst expected, at €0.87 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.
Taking into account the latest results, the most recent consensus for Kreate Group Oyj from one analyst is for revenues of €758.3m in 2027. If met, it would imply a substantial 29% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 54% to €2.93. In the lead-up to this report, the analyst had been modelling revenues of €736.8m and earnings per share (EPS) of €2.97 in 2027. So it looks like there's been no major change in sentiment following the latest results, although the analyst has made a small lift in to revenue forecasts.
See our latest analysis for Kreate Group Oyj
The consensus price target increased 27% to €38.00, with an improved revenue forecast carrying the promise of a more valuable business, in time.
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. The analyst is definitely expecting Kreate Group Oyj's growth to accelerate, with the forecast 23% annualised growth to the end of 2027 ranking favourably alongside historical growth of 12% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Kreate Group Oyj is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analyst reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on Kreate Group Oyj. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Kreate Group Oyj (at least 1 which is potentially serious) , and understanding these should be part of your investment process.
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